RentoMojo - How it Fosters Living the Contemporary Lifestyle on Rent?
đź“„Company Profiles
Millennials today are more into sharing than owning things. Be it workspaces, cabs, or furniture. With the passage of time, we are seeing a revolutionary modernization of the things that were done traditionally. To bring the air of change in lifestyle and how it is lead, IIT-Madras graduates Geetansh Bamania and Ajay Nain founded RentoMojo in 2014 to empower the furniture renting space.
You can rent appliances, furniture, and even office furniture. RentoMojo allows you to rent furniture, appliances, and more online.
Read more about the RentoMojo, Founders and Team, Business Model, Revenue Model, Funding and Investors, Growth and more.
RentoMojo - Company Highlights
| STARTUP NAME | RENTOMOJO |
|---|---|
| Headquarters | Bangalore, Karnataka, India |
| Sector | Ecommerce |
| Founder | Achal Mittal, Ajay Nain, Geetansh Bamania, and Gautam Adukia |
| Founded | 2014 |
| Website | rentomojo.com |
RentMojo - About
RentoMojo - How it Works?
RentMojo - Industry
RentoMojo - Founders and Team
RentoMojo - Startup Story
RentoMojo - Name and Logo
RentoMojo - Business Model
RentoMojo - Revenue Model
RentoMojo - Startup Launch
RentoMojo - Challenges Faced
RentoMojo - Funding and Investors
RentoMojo - Growth
RentoMojo - Partnerships
RentoMojo - Awards
RentoMojo - Competitors
RentoMojo - Future Plans
Ashwini
RentMojo - About
As the name suggests, RentoMojo is a consumer leasing company. It is an online rental platform that provides furniture, appliances, and electronics (mobiles, laptops) on a monthly rental basis. It is quite the leader in the lifestyle leasing/subscription industry in terms of revenue and number of subscribers. One of the reasons that fostered its growth is the asset-light financial business model, which makes this venture unique and sustainable.
RentoMojo - How it Works?
The verticals of RentoMojo majorly include furniture, appliances, and electronics, however. These verticals offer various items such as beds, microwaves, televisions, tables, and water purifiers on rent. Besides this wide array of items, this platform also offers packages for combined items.
It raises lease capital from financial institutions for products rented to consumers for long periods, typically up to 18 months. The company currently offers leases for furniture, appliances, bikes, and more. RentoMojo ideally functions through tie-ups with local suppliers and does not hold any of its inventory.
Vidhi Punamiya
RentMojo - Industry
As per a May 2021 news article, the Indian furniture market experienced significant expansion in 2020, with an approximate market valuation of $41 billion. Remarkably, the rental furniture sector claimed a significant portion of the market, with almost $2 billion, or 4.9%, of the total.
Forecasts show a marked rising trend, with industry estimates predicting a notable rise to $750-$800 billion by 2030. This data illustrates both the dynamic movement in customer tastes and the growing importance of the rental furniture industry in India's larger furniture market.
RentoMojo - Founders and Team
RentoMojo was founded by Geetansh Bamania, Achal Mittal, and Ajay Nain (Ex- Co-Founder and COO) in November 2014 in Bangalore, Karnataka, India.
Geetansh Bamania
Geetansh Bamania, the visionary Founder of RentoMojo, holds a strong academic background with a BTech and MTech degree in Mechanical Engineering from IIT Madras. His career path encompasses a wide variety of experiences; he began as an IT Strategy Consultant at KPMG Advisory. After that, Geetansh moved into the fast-paced world of e-commerce and helped Flipkart.com expand before deciding to start his own business.
Initiating click2skill.com, he was a key member of the group. Geetansh, who had an eye for innovation, started at HopeMonkey before making a big difference at Pepperfry as the Furniture Head for Private Label. His varied experiences highlight a broad career filled with leadership positions and strategic insights in a range of industries, which finally led to the founding and development of RentoMojo.
Achal Mittal
The Co-Founder of RentoMojo, Acha Mittal, comes to the position with a strong professional and academic background. After completing his studies and getting a Bachelor of Commerce (BCom) from Narsee Monjee College of Commerce and Economics, he went on to earn a Master of Business Administration (MBA) with a finance concentration.
Following that, Acha Mittal started a career in finance, holding managerial roles in corporate banking at ICICI and then HSBC. In addition to his achievements in the finance sector, he is also the Co-Founder of LiquiLoans.
Ajay Nain
Ajay Nain is the Ex-Co-Founder and COO of the company. Ajay is also an engineer from IIT Madras and holds a dual degree (BTech and MTech) in Mechanical Engineering, much like the founder of the company, Geetansh. Nain also happens to be a Lean Six Sigma expert in Supply Chain from RABQSA.
After being the co-founder of RentoMojo, Ajay Nain went on to found Gully Network Retail with the vision of organizing the unorganized retail space however he left the company on March, 23, 2023 and joined Turno as a growth consultant. Ajay Nain was a senior consultant at KPMG, the Manager at The Himalaya Drug wellness Company, and the Project Manager at Daimler India.
Gautam Adukia was also one of the founding members of the company along with the co-founders mentioned above.
RentoMojo operates with an employee of 501-1,000 employees.
Chayanika Goswami
RentoMojo - Startup Story
All of this started when Rentomojo founder Geetansh was managing products at Flipkart and then went on to head the furniture category at Pepperfry. All this while, he kept moving around the four main cities of India, namely Chennai, Bengaluru, Delhi, and Mumbai.
And during this exact time, his brother was in the UK, and he rented or leased pretty much everything he needed to sustain a temporary living arrangement. Hence, Geetansh too started thinking along similar lines, but renting furniture and appliances was the first of the ideas that he came up with.
Geetansh, RentoMojo owner of RentoMojo, initially thought of renting out toys to children, with the reasons being that they are expensive and children only use them for a couple of days before the parents buy them new ones. However, Geetansh soon recalled that he had a background and relevant experience in furniture and appliances.
This is why he realized that furniture and appliances would be a more known path to begin his entrepreneurial journey. That’s when he quit Pepperfry and went on to launch RentoMojo in November 2014.
RentoMojo - Name and Logo
RentoMojo's parent company is Edunetwork Private Limited.
RentoMojo - Business Model
RentoMojo initially started as a furniture rental platform. However, it was quick to realize that behaving like a fintech or leaving a company would be more beneficial. This is why it modified its business model soon to promote itself as a fintech or leasing company, which provides consumers with a viable alternative to traditional EMIs by offering rental options across various product categories.
RentoMojo follows an asset-light business model, where it has tied up with strategic vendors and works on a cost-sharing basis with them.
A majority of its income comes from renting its furniture and fixtures. The other half comes from its customers via subleasing assets and other ancillary fees that the company collects.
RentoMojo - Revenue Model
RentMojo makes revenue from different sources; some of them are listed below:
Furniture and Fixtures Rentals: RentMojo gets a large amount of its income from clients who rent furniture and fixtures. In order to provide a consistent flow of revenue, the business rents out a variety of furniture, including couches, beds, tables, and other necessities for the home.
Customer Subleasing Assets: RentMojo allows its customers to sublease the assets they have rented, which helps to diversify its revenue streams. Thanks to this creative strategy, the business may make more money off of its platform when clients enter into sublease agreements, increasing its total revenue.
Ancillary Fees Collection: RentMojo gets extra money from clients by charging them auxiliary fees. These extra fees could cover a range of platform services or features that improve customer satisfaction and support the company's overall financial viability.
Shubham Kumar
RentoMojo - Startup Launch
After launching the startup, RentoMojo received its first order in just within a month i.e., December of the same year. Also, within 24 months, RentoMojo grew from catering to 1,000 customers to 25,000 customers. During this time the company claimed to grow on a scale of 40X.
When it comes to sourcing, RentoMojo works with only a few vendors. These vendors have been identified carefully by the company on a basis like the quality of products and turnaround time (TAT). Instead of dealing with large and well-known vendors in the city, the startup ideally relies much more on local vendors.
RentoMojo - Challenges Faced
There is a common insight into the huge disparity in the purchasing power of developed and developing nations. RentoMojo, as a venture, strives to erode this problem and provide a contemporary and comfortable lifestyle to the younger generation.
Though availing consumer products through leasing and renting is a fairly great concept because it is cheaper and also effectively more convenient and flexible than buying, it is still a foreign and new concept for Indian consumers.
“Effectively reaching out to make them aware and influence our target audience with the appropriate marketing mix at optimum investment is the challenge”, said Geetansh, RentoMojo CEO.
RentoMojo is dodging challenges through effective targeting, putting up relevant and optimized content, spreading awareness hacks, and communications to educate Indian customers about renting and its benefits.
“We face the same challenges as what Airbnb, Uber and lending clubs would have faced in their initial days”, added Geetansh, RentoMojo founder.
Rishabh Rathi
RentoMojo - Funding and Investors
RentoMojo has raised a total of $96.2 million in funding over 17 rounds of funding.
Here is a list of all the funding rounds of RentoMojo:
| Date | Stage | Amount | Investors |
|---|---|---|---|
| February 21, 2024 | Series D | $25 million | Edelweiss Financial Services |
| November 25, 2021 | Venture Round | $2.01 million | - |
| November 25, 2021 | Debt Financing | $17.47 million | - |
| March 14, 2021 | Series C | $1.34 million | - |
| June 2, 2020 | Series C | $3.01 million | Shri Investment, Pratithi Investment Trust, Gautam Dalmia |
| May 14, 2020 | Series C | $3.29 million | Bain Capital, Renaud Laplanche, Chiratae Ventures |
| September 1, 2019 | Secondary Market | $320K | - |
| August 28, 2019 | Series C | $3.72 million | Samsung Ventures |
| July 18, 2019 | Series C | $11.6 million | Renaud Laplanche |
| May 10, 2019 | Series C | $10.35 million | Accel, Chiratae Ventures |
| July 19, 2017 | Series B | $10 million | Bain Capital Ventures |
| May 2017 | Debt Financing | - | IntelleGrow |
| April 2017 | Venture Round | - | Innoven Capital |
| November 2016 | Non Equity Assistance | $50K | Google Launchpad Accelerator |
| July 2016 | Series A | $5 million | IDG Ventures India, Accel |
| November 2015 | Seed Round | $2 million | IDG Ventures India, Accel |
Vidhi Punamiya
RentoMojo - Growth
Some of the growth highlights of RentoMojo are as follows:
- It has served over 1.5 lakh happy subscribers as of January 2024.
- It has served 450,000 customers since its inception as of January 2024.
- It operates in 16 cities as of January 2024.
- RentoMojo clocked a revenue of Rs 121 crore in FY23.
- Serves more than 100,000 live orders in a month as of 2019.
Financials
| RentMojo Financials | FY22 | FY23 |
|---|---|---|
| Operating Revenue | Rs 98.6 crore | Rs 121 crore |
| Profit/Loss | Loss of Rs 13 crore | Profit of Rs 6.2 crore |
RentoMojo - Partnerships
RentoMojo has partnered with the online marketplace for pre-owned furniture and appliances, Zefo, to help their customers avail of the hassle-free 'Rental Monthly Instalments (RMI) on April 18, 2018.
RentoMojo - Awards
RentoMojo was declared the winner of the Chiratae Ventures Pride of India Awards 2020 edition.
RentoMojo - Competitors
In the rental space of the country, RentoMojo faces both direct and indirect competition from the competitors like:
- Fabrento
- Furlenco
- Guaranted
There are many other major and minor players in the industry that also act as rivals to RentoMojo. However, none of these scaled-up companies in the lease and subscription industry have an asset-light model similar to RentoMojo, which it believes, is the only way to scale and crack subscription business globally. This asset-light business model is where most of the inventory is not owned by the company.
“As an asset-light company, we have the flexibility to expand to a new location at the click of a button, increase our number of partners, and expand our capacity. Through outsourcing of asset sharing, we can focus on scaling by investing in R&D”, said Geetansh, owner of RentoMojo.
RentoMojo - Future Plans
Following the successful completion of the most recent investment round, Rentomojo is preparing for growth and strategic development. The money will help the company expand its business and bolster its balance sheet. Although the precise valuation is still unknown, Bamania views this money as a springboard to keep Rentomojo at the top of India's furniture and appliance rental market.
To ensure sustainable growth and take advantage of new prospects in the rental market, the future plans call for significant financial investments and operational upgrades. This strategy demonstrates Rentomojo's dedication to long-term success and innovation.
FAQs
How is RentoMojo?
The inventory is attractive and beautifully presented. They rent everything from furniture to bikes and more. With a team of local furniture dealers, Digital Marketing experts, Data scientists, and a strong technical team, Rentomojo hopes to provide an amazing experience to its customers.
What is RMI RentoMojo?
RentoMojo allows consumers to subscribe or get smartphones on lease through the company's Rental Monthly Instalments (RMI) system. Online rental marketplace for furniture, home appliances, and two-wheelers Rentomojo has added high-end smartphone to its list.
Is it better to buy or rent furniture?
Buying your own furniture is an expensive process, requiring a high amount of money that requires to be paid upfront. Whereas the key benefit of renting furniture is the fact that only a negligible amount is paid upfront, with a reasonable rent to be paid monthly.
Where is RentoMojo Head office?
RentoMojo headquarters is in Bangalore, Karnataka, India.
Who is the CEO of RentoMojo?
Geetansh Bamania is the Founder & CEO of RentoMojo
When was RentoMojo started?
RentoMojo was founded by Achal Mittal, Ajay Nain, Gautam Adukia and Geetansh Bamania in 2014.
Who is the Parent Company of RentoMojo?
Edunetwork Private Limited, doing business as RentoMojo, offers furnishing solutions platform.
How long does RentoMojo take to deliver?
Once payment has been confirmed, kindly upload the required files. We'll deliver your order in a span of 72 hours. If more documents are required, we'll get in touch with you.
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