Rentomojo Completes Landmark ₹1,256 Crore IPO to Become India's First Listed Furniture Subscription Platform

Bengaluru-headquartered furniture and appliance rental platform Rentomojo has completed its landmark ₹1,255.57 crore ($130.8 million) initial public offering (IPO), becoming the first online furniture and consumer appliances subscription platform to debut on Indian stock exchanges.

The public offering saw strong institutional and retail appetite, concluding with an overall subscription of 72.89 times. Shares of the company subsequently listed on the National Stock Exchange (NSE) and BSE at ₹482.45 and ₹480 apiece, respectively, reflecting a premium of nearly 19% over the issue price of ₹404. Following the debut, the platform’s market capitalisation crossed ₹5,000 crore.

Issue Structure and Use of Proceeds

The book-built issue of 31,080,978 equity shares, with a face value of ₹1 each, was priced at the upper end of its ₹384 to ₹404 price band. The structure comprised:

• A fresh issue of 3,715,449 equity shares aggregating to ₹150 crore.
• An offer for sale (OFS) of 27,365,529 existing equity shares aggregating to ₹1,105.57 crore.

According to the regulatory filings, Rentomojo will deploy net proceeds from the fresh capital raise primarily to prepay or repay outstanding borrowings. The company has also earmarked funds to cover lease rentals and licensing obligations for its expanding footprint of experience stores and regional fulfilment warehouses, alongside funding general corporate purposes.

Early Backers Realise Multi-Fold Gains

The public offer enabled key early-stage venture capital investors and promoter group entities to monetize portions of their holdings. Accel India IV (Mauritius) Limited, which held a 20.92% pre-issue stake, acted as the largest selling shareholder in the OFS, divesting shares worth approximately ₹317 crore.

Other selling shareholders in the OFS included institutional investors such as Edelweiss Discovery Fund, Chiratae Trust, IDG Ventures India Fund III, ValueQuest S.C.A.L.E. Fund, and Madison India Opportunities, as well as promoter Geetansh Bamania and promoter group member Gaurav Bamania.

Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services acted as book-running lead managers for the transaction. The legal advisory panel featured Cyril Amarchand Mangaldas representing the issuer and promoters, Trilegal acting for the selling investors, Talwar Thakore & Associates (TT&A) representing domestic underwriters, and Hogan Lovells advising lead managers on international law.

Subscription Metrics and Financials

Demand for the offering was broad-based across all investor categories during the bidding window:

Subscription Breakdown by Category:

• Qualified Institutional Buyers (QIBs): Subscribed 177.29 times the allocated portion (excluding anchor book allocation).
• Non-Institutional Investors (NIIs): Subscribed 67.93 times.
• Retail Individual Investors (RIIs): Subscribed 15.62 times.

Prior to the IPO opening, Rentomojo raised ₹376 crore from over 40 anchor institutional investors, including Kotak Mutual Fund, HDFC Mutual Fund, and Goldman Sachs.

The strong investor backing follows a notable financial turnaround and scaling phase. For the fiscal year ended March 31, 2025, Rentomojo posted revenue from operations of ₹265.96 crore with a profit after tax of ₹43.11 crore. The company continued its profitability momentum into Fiscal 2026, driven by higher rental tenures and recurring subscription billings across 29 Indian metropolitan cities, servicing more than 2.5 lakh active subscribers.

As the first pure-play furniture subscription stock on Dalal Street, Rentomojo establishes an industry-defining benchmark for asset-heavy direct-to-consumer tech business models in India.

Tags: Rentomojo BSE NSE SEBI Accel Consumer Internet