Furniture rental firmsaid it has raised Rs 145 crore as people start coming back to cities and offices open up.
The new fundraise is a mix of debt and equity. While Rs 130 crore is debt, the remaining Rs 15 crore is equity raised from existing investors including Accel and Bain Capital, Geetansh Bamania, Founder, Rentomojo, told YourStory in an interaction. The founder did not disclose the name of the firm they raised debt from.
Accel, which was an early backer of Flipkart, led the furniture leasing platform’s Series C round, in 2019, while Bain Capital Ventures led the Series B round in 2017, according to Crunchbase.
“During the second lockdown, when people started going back to their hometowns, that impacted us slightly. But now those people who went back are coming back and ordering. So there are huge number of orders,” Geetansh said.
The IIT-Madras graduate, who also headed private labels for furniture marketplace PepperFry, claims Rentomojo currently has over 125,000 subscribers.
Team at RentoMojo
Run under Edunetwork Pvt. Ltd., the platform was founded in 2014 by Geetansh and Ajay Nain, a former consultant, who left the firm in 2018 to work on his own startup. The platform started renting out furniture in core category including beds, television and washing machine, among others. During the pandemic the work-from-home (WFH) range grew 25 percent from 9 percent in pre-pandemic levels.
But now demand for core furniture is rising while WFH range has come down to 12-13 percent.
Geetansh agrees that the lockdown was tough. But the firm has been able to clock a revenue of over Rs 100 crore for FY21, and also turned profitable in October 2021.
“We are now expecting our revenue to grow by 25-35 percent by the end of this year,” says Geetansh.
The firm is also expanding in Ahmedabad, Mysore, Jaipur, Faridabad, Ghaziabad, Gandhinagar Chandigarh and Kolkata.
Rentomojo currently competes with Kieraya Furnishing Solutions Pvt. Ltd.-run Furlenco. The Bengaluru-based firm is also raised a debt round of Rs 1.1 billion, in August 2021, from Trade Cred, a Mumbai-based credit firm.