RentoMojo has been on a fundraising spree and secured INR 22.42 Cr on June 1
It is raising funds to meet its growth objectives and to strengthen its financial position
RentoMojo CEO Geetansh Bamania said Covid-19 is an inflexion point for the rental industry
Bengaluru-based furniture rental platform RentoMojo is now adding yet another top-up for its ongoing Series C funding round.
According to the Ministry of Corporate Affairs filings accessed by Inc42, the company in a board meeting on May 27, approved Series C2 and Series C1 preferences shares worth INR 22.43 Cr and INR 29.19 Cr respectively. Of this, Series C2 INR 22.43 Cr came in from its existing investors, Shri Investment; Pratithi Investment Trust and Gautam Dalmia on June 1.
The remaining INR 29.19 Cr has been offered to GMO GFF Limited Partnership, Gautam Dalmia and Hack VC at a face value of INR 100 at a premium of INR 1,01,630.79 per share. The company has said that in order to meet its growth objectives and to strengthen its financial position, it is contemplating the generation of long-term resources.
Over the last few months, the company has been raising debt as well, with INR 60 Lakh in March. Prior to this round, the company has raised $45.8 Mn till date from investors like Samsung Ventures, Chiratae Ventures, Accel Partners, BCIP Venture Associates, Bain Capital and Renaud Laplanche.
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 told Inc42 that RentoMojo has tripled its revenue in FY19 and was on track to turn EBITDA-profitable in FY21.
Recently, Bamania talking about the impact of Covid-19 told that the company did see a dip as people were not sure about when deliveries would be made during the lockdown. However, the volumes have now started ramping up. Bamania added, “given there is an organic demand for rental as a category as we are coming out of the lockdown, this is an inflexion point for the rental industry.”
In the wake of coronavirus, many startups are facing disruptions in their operations. According to market research firm Capgemini Research, 50% of customers are expecting a decrease in their furniture spending, whereas around 23% are expecting an increase in such purchases. 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.