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Home / IPO Watch / Rentomojo IPO 2026: ₹1,255.57 Crore Issue Opens September 9 — Price, Lot Size, Financials and Key Risks
IP · IPO Watch

Rentomojo IPO 2026: ₹1,255.57 Crore Issue Opens September 9 — Price, Lot Size, Financials and Key Risks

Rentomojo IPO is set to open for subscription on September 9, 2026, allowing investors to participate in India’s growing online furniture and appliance rental market.

The company is looking to raise approximately ₹1,255.57 crore through a book-built IPO comprising a fresh issue of ₹150 crore and an Offer for Sale of up to 2.74 crore equity shares.

The IPO price band has been fixed at ₹384 to ₹404 per share. The minimum application size is 37 shares, requiring an investment of ₹14,948 at the upper price band.

The shares are proposed to be listed on both the BSE and NSE.

Rentomojo IPO: Key Details

  • IPO Open Date: September 9, 2026
  • IPO Close Date: September 11, 2026
  • Price Band: ₹384–₹404 per share
  • Face Value: ₹1 per share
  • Issue Size: Approximately ₹1,255.57 crore
  • Fresh Issue: ₹150 crore
  • Offer for Sale: Up to 2,73,65,529 equity shares
  • Lot Size: 37 shares
  • Minimum Investment: ₹14,948
  • Retail Quota: 10%
  • NII Quota: 15%
  • QIB Quota: 75%
  • Listing: BSE and NSE
  • Basis of Allotment: September 15, 2026
  • Expected Listing Date: September 17, 2026
  • Lead Managers: Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services
  • Registrar: KFin Technologies

What Does Rentomojo Do?

Rentomojo operates a technology-enabled platform that allows consumers to rent furniture and household appliances instead of purchasing them outright.

Its product portfolio includes items such as:

  • Beds
  • Sofas
  • Wardrobes
  • Refrigerators
  • Washing machines
  • Water purifiers
  • Other household furniture and appliances

The company offers products from brands including Haier, Wakefit, Livpure and Duroflex.

Rentomojo follows an omnichannel model, combining its online platform with physical experience stores.

As of 2025, the company had approximately 2.28 lakh live subscribers across 22 cities, supported by 67 experience stores and 21 warehouses covering approximately 4.44 lakh square feet.

Why the Furniture Rental Market Could Grow

Rentomojo’s business is based on the broader trend toward asset-light consumption and subscription-based services.

Renting furniture and appliances can be attractive to customers who:

  • Move frequently between cities
  • Are young professionals
  • Live in rented accommodation
  • Do not want to make large upfront purchases
  • Prefer flexibility over ownership
  • Need furniture temporarily

The model can also provide customers with the flexibility to upgrade or replace products without having to sell their existing furniture.

This creates a potentially large addressable market in India’s major urban centres.

However, investors should remember that the rental model is asset-intensive because the company needs to purchase and maintain the products that it rents to customers.

Rentomojo’s Subscriber Base and Scale

The company’s growing subscriber base is one of the key metrics to watch.

The platform had approximately 227,511 live subscribers in 2025, operating across 22 cities.

The company also reported 728,773 live products across its furniture and appliance portfolio.

For investors, subscriber growth will be important because the company’s long-term economics depend not only on adding customers but also on retaining them and generating sufficient revenue from each customer.

Key metrics to monitor after listing will therefore include:

  • Subscriber growth
  • Customer retention
  • Average revenue per subscriber
  • Product utilisation
  • Rental yields
  • Customer acquisition costs
  • Inventory turnover
  • Operating cash flow

How Will Rentomojo Use the IPO Funds?

The fresh issue is relatively small compared with the total IPO size.

The company plans to use the fresh proceeds primarily for:

₹70 crore: Repayment or prepayment of certain outstanding borrowings and accrued interest.

₹42.50 crore: Payment of lease rentals and licence fees for warehouses and experience stores.

The remaining amount is earmarked for general corporate purposes.

The use of proceeds indicates that the IPO will also help the company strengthen its balance sheet and support its physical infrastructure.

Rentomojo Financial Performance

Rentomojo has reported strong revenue growth over the past few financial years.

Its reported financial performance includes:

  • FY2023 Revenue: ₹123.87 crore
  • FY2024 Revenue: ₹195.80 crore
  • FY2025 Revenue: ₹271.96 crore
  • FY2026 Revenue: ₹394.09 crore

The company reported profits of:

  • FY2023: ₹4.41 crore
  • FY2024: ₹22.41 crore
  • FY2025: ₹43.11 crore
  • FY2026: ₹104.30 crore

The reported figures indicate a significant improvement in both revenue and profitability, particularly in FY2026.

This sharp improvement in earnings is one of the major positives investors will examine when evaluating the IPO.

Strong Improvement in Profitability

The company reports FY2026:

  • ROE: 43.51%
  • ROCE: 25.34%
  • EBITDA Margin: 41.48%
  • PAT Margin: 26.95%
  • EPS: ₹10.42
  • NAV: ₹28.65

These figures indicate a substantial improvement in profitability and returns on capital.

However, investors should examine whether the FY2026 jump in profit represents a sustainable improvement in the underlying business or whether some one-off factors contributed to the increase.

That distinction will be important when assessing the IPO valuation.

Rentomojo IPO Valuation

At the upper price band of ₹404, the issue values the company at a significant premium to its reported FY2026 NAV of ₹28.65 per share.

Based on the reported FY2026 EPS of ₹10.42, the implied price-to-earnings multiple at the upper band is approximately 38.8 times earnings.

This means the IPO is not inexpensive purely on historical earnings.

Investors will therefore be paying for the company’s expected future growth rather than simply its current earnings.

The key question is whether Rentomojo can continue growing its subscriber base, revenue, and profitability fast enough to justify the valuation.

No Direct Listed Peer in India

According to the IPO details, Rentomojo does not have a directly comparable listed company in India.

This makes valuation more challenging because investors cannot easily compare its P/E, margins, and growth profile with an identical listed competitor.

Investors should therefore look at broader consumer-tech, rental, consumer durable, and platform-business valuations while also considering the differences in their business models.

Promoter and Ownership

The promoter of Rentomojo is Geetansh Bamania.

Before the IPO, the promoter and promoter group held approximately 21.51% of the company.

The company has a broad shareholder base, with other shareholders holding approximately 77.52% before the IPO.

The relatively low promoter ownership is something investors may want to examine in the company’s RHP, particularly with respect to the post-IPO ownership structure and the identity of major existing shareholders.

Key Positives of Rentomojo IPO

Strong Revenue Growth

Revenue increased from ₹123.87 crore in FY2023 to ₹394.09 crore in FY2026.

Rapid Profit Growth

Reported profit increased sharply to ₹104.30 crore in FY2026 from ₹43.11 crore in FY2025.

Growing Subscriber Base

The company had more than 2.27 lakh live subscribers across 22 cities as of 2025.

Large Product Base

The company reported more than 7.28 lakh live products across furniture and appliances.

Technology-Enabled Business Model

The combination of an online platform, experience stores, and warehouses provides an omnichannel rental model.

Improving Profitability

The reported FY2026 ROE, ROCE, and margins indicate a significant improvement in profitability.

Key Risks Investors Should Watch

Despite the strong growth, Rentomojo has several risks that investors should consider.

High IPO Valuation

At ₹404 per share and reported FY2026 EPS of ₹10.42, the implied P/E is around 38.8 times.

This leaves less room for disappointment if future earnings growth slows.

Asset-Heavy Rental Model

Unlike a pure software or marketplace company, Rentomojo must invest in physical products that remain on its platform.

Furniture and appliances also face depreciation, maintenance, and replacement costs.

Inventory and Utilisation Risk

The economics of the rental business depend heavily on how efficiently the company’s products are utilised.

Idle inventory can reduce returns on capital.

Customer Retention

The company needs to maintain strong subscriber retention to generate attractive lifetime value from customers.

Competition

The online furniture, appliance and rental market remains competitive. Customers can choose between buying products, renting them, or using competing rental platforms.

Limited Retail Allocation

Only 10% of the IPO is reserved for retail investors, while QIBs receive 75%.

This could make the IPO subscription dynamics very different from issues with a larger retail allocation.

Rentomojo IPO GMP

The Grey Market Premium, or GMP, can indicate unofficial market sentiment ahead of listing, but it should not be considered a guaranteed listing gain.

GMP can change rapidly based on market conditions, IPO subscription levels, and investor sentiment.

For Rentomojo, investors should pay more attention to subscriber growth, profitability, valuation, cash flows, and asset utilisation than simply relying on the GMP.

Rentomojo IPO Important Dates

The IPO will open on September 9, 2026, and close on September 11, 2026.

The expected timeline is:

IPO Opens: September 9, 2026
IPO Closes: September 11, 2026
Basis of Allotment: September 15, 2026
Refunds: September 16, 2026
Shares Credited: September 16, 2026
Listing: September 17, 2026

Rentomojo IPO: Investor View

Rentomojo offers investors exposure to an interesting consumer trend: renting rather than owning furniture and appliances.

The company has demonstrated strong revenue growth and a significant improvement in profitability. Its expanding subscriber base, product portfolio, and presence across major Indian cities provide a platform for further growth.

The biggest issue for investors is valuation.

At the upper price band of ₹404, the implied valuation based on reported FY2026 EPS is relatively demanding. The company will therefore need to sustain strong growth in subscribers, revenue and profits to support the IPO valuation.

The asset-intensive nature of the rental model is another important consideration. Investors should monitor product utilisation, depreciation, maintenance expenses and operating cash flows after listing.

Conclusion

The Rentomojo IPO is a ₹1,255.57 crore mainboard issue with a price band of ₹384 to ₹404 per share.

The company has built a sizeable furniture and appliance rental platform with more than 2.27 lakh live subscribers across 22 cities and a large product portfolio.

Its reported FY2026 financial performance is encouraging, with revenue of ₹394.09 crore and profit of ₹104.30 crore.

The key attraction is the company’s strong growth and improving profitability. The key concern is the valuation and sustainability of that growth.

For long-term investors, Rentomojo could be an interesting consumer-tech story, but the IPO should be evaluated on its ability to sustain subscriber growth, improve asset utilisation, and generate consistent cash flows rather than on listing gains alone.

Investors should read the company’s RHP carefully and assess the risk factors and valuation before subscribing.

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