Rentomojo Files DRHP for IPO, Aims to Scale Rental Platform

The online subscription leader seeks to raise ₹150 crore through a fresh issue to bolster its warehouse network and repay outstanding debt.

BENGALURU — Bengaluru-based Rentomojo Limited, India’s largest full-stack online rental and subscription platform for home furniture and appliances, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company intends to tap into the public markets through an Initial Public Offering (IPO) to fund its next phase of operational expansion.

As of July 2026, Rentomojo has positioned itself as a dominant player in the organized subscription segment, offering a flexible, asset-light alternative to traditional ownership. The proposed IPO is a book-building issue comprising a fresh issuance of equity shares aggregating up to ₹150 crore and an Offer for Sale (OFS) of 28,399,567 equity shares by existing stakeholders.

Strategic Objectives for the IPO

According to the DRHP filed with SEBI, Rentomojo plans to utilize the net proceeds from the fresh issue to strengthen its balance sheet and support infrastructure growth. The primary objectives include the repayment or prepayment of certain outstanding borrowings and accrued interest, as well as the payment of lease rentals and license fees for its warehouses and experience stores across India. A portion of the funds has also been earmarked for general corporate purposes.

The company’s growth trajectory has been marked by strong financial performance. For the fiscal year ending March 2025, Rentomojo reported a total income of ₹271.96 crore and a Profit After Tax (PAT) of ₹43.11 crore, showcasing significant improvement over the previous year. As of September 30, 2025, the platform served over 227,000 live subscribers, operating through a robust network of 21 warehouses.

Strengthening the Rental Ecosystem

Rentomojo operates a technology-driven, direct-to-consumer (D2C) model that manages the entire lifecycle of its assets—from design and procurement to refurbishment and multi-cycle redeployment. This integrated "flywheel" model has allowed the company to maintain high asset utilization rates and consistent cohort returns, positioning it as a leader in the Indian subscription economy.

The firm’s expansion comes at a time when urban consumers are increasingly prioritizing flexibility and convenience over outright asset ownership. By providing a scalable, tech-enabled solution, Rentomojo aims to capitalize on the growing demand for home essentials among India’s mobile, urban workforce.

Official Sources

The DRHP was formally submitted to SEBI on March 27, 2026. The book-running lead managers appointed for the issue include Motilal Oswal Investment Advisors Limited, Axis Capital Limited, and IIFL Capital Services Limited. Detailed financial and operational data, including risk factors associated with the offer, are available in the official DRHP documentation hosted by the NSE and the SEBI filings portal.

Why It Matters

The potential listing of Rentomojo marks a significant milestone for the Indian D2C and subscription-based service sector. A successful IPO would not only provide the company with the capital required to expand its geographic footprint and asset base but also validate the viability of the rental-as-a-service business model in a market traditionally dominated by ownership. For investors, the IPO represents an opportunity to participate in a company that has demonstrated profitability and a proven track record in asset lifecycle management.

Key Facts at a Glance

• Issue Structure: Fresh issue of up to ₹150 crore and an Offer for Sale (OFS) of 28,399,567 shares.

• Business Model: Full-stack, D2C online subscription platform for furniture and home appliances.

• Operational Scale: Over 227,000 live subscribers across 22 cities as of September 2025.

• Financial Performance: Profit After Tax (PAT) of ₹43.11 crore for FY2025.

• Listing Venue: Proposed listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

FAQ

What is the status of the Rentomojo IPO?

The company has filed its DRHP with SEBI. As of early July 2026, the specific dates for the IPO opening, price band, and listing are yet to be finalized and will be announced by the company in due course.

How will the IPO proceeds be used?

The proceeds from the fresh issue will be utilized to pay off outstanding debt, cover lease rentals for warehouses, and meet general corporate requirements.

Who are the lead managers for the issue?

The book-running lead managers for the Rentomojo IPO are Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services.

Where can I find the official DRHP?

The Draft Red Herring Prospectus is publicly available for review on the SEBI website and the official archives of the National Stock Exchange (NSE).

Sources:  official DRHP documentation hosted by the NSE and the SEBI filings portal.