The investors in this round include Chiratae Ventures, Accel Partners and others
The fresh funding will be used for the expansion of business
Over the last few months, the company has been raising debt as well
Amid the challenging market conditions created by the Covid-19 pandemic for the furniture and rental industry, Bengaluru-based furniture rental platform RentoMojo is now looking to scoop up fresh funding.
According to the ministry of corporate affairs filings accessed by Inc42, the company in a board meeting on May 7, approved and issued 2,407 Series C preference shares at a face value of INR 100 with a premium of INR 1,01,630.79 per share worth INR 24.48 Cr.
The investors in this round include Chiratae Ventures, Accel Partners, BCIP Venture Associates, Bain Capital, and Renaud Laplanche. The company in its filings said that the fresh funding will be used for the expansion of business and for general working capital purposes.
Over the last few months, the company has been raising debt as well, with INR 60 Lakh in March. Overall, the company has raised $45.8 Mn till date from investors like Samsung Ventures, GMO Payment Gateway etc.
RentoMojo began its operations in November 2014 and was founded by Geetansh Bamania, Achal Mittal, Ajay Nain, and Gautam Adukia. The startup leases out consumer appliances, furniture and other products business. 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 follows an asset-light model where it has tied up with strategic vendors and works on a cost-sharing basis with them.
Geetansh Bamania, founder and CEO of RentoMojo, had earlier said, “The organised market for renting is still at its infancy in terms of penetration and there is huge potential for a number of players to establish themselves in this domain. While companies do look at ways of promoting and attracting consumers, the success of our business largely depends on scalability. At RentoMojo we have tripled our revenue in FY19 and are on track to turn EBITDA-profitable in FY21.”
In the wake of coronavirus, many startups are facing disruptions in their operations. In India, the furniture industry is currently valued at around $18 Bn (INR 1,294,06 Cr). Out of this, around 85-90% of the market is dominated by unorganised retailers