Rentomojo’s four-year profit run shifts
Rentomojo’s managing director Geetansh Bamania says the furniture rental firm now generates enough operating cash to fund its own growth, marking a
Rentomojo is generating enough cash from operations to fund its capital expenditure, a shift from its historical reliance on external capital for growth, according to managing director and CEO Geetansh Bamania. The company reported ₹172.9 crore in net cash from operating activities in FY26, while capital expenditure on property, plant and equipment-including furniture and appliances for rental-totalled ₹175.8 crore in the same period.
This improvement in cash generation coincides with Rentomojo’s four-year streak of profitability. Profit after tax rose from ₹4.4 crore in FY23 to ₹22.4 crore in FY24, ₹43.1 crore in FY25, and ₹104.3 crore in FY26. Revenue from operations increased 45.5% year-on-year to ₹386.99 crore in FY26.
The company’s IPO, sized at ₹1,255.57 crore, will open on 9 September and close on 11 September, with a price band of ₹384-404 per share. It includes a fresh issue of ₹150 crore and an offer for sale of ₹1,105.57 crore. Proceeds from the fresh issue are earmarked largely for debt repayment and lease-related expenses.
Bamania said the earlier constraint was not furniture supply but the capital needed to finance inventory. Now, internal accruals are sufficient to fund growth. He added that improved profitability has restored lender confidence, which had previously been a major hurdle.
Asset reuse remains central to Rentomojo’s model. Products are returned, refurbished and redeployed rather than retired after one use. As of March, 56.12% of the FY17 cohort and 60.92% of the FY18 cohort of furniture and appliances were still generating revenue. The company estimates a useful life of about 10 years for its assets.
At the end of FY26, Rentomojo had 851,184 live items on rent, with an occupancy rate of 83.34%. Bamania noted that older assets have delivered close to four times their original revenue over multiple rental cycles.
Despite these gains, he described the business as operationally complex, involving subscription management, annual capex, collections, asset recovery, refurbishment, warehousing and logistics-calling it "almost like four or five businesses together."
Growth opportunities lie in deeper penetration in existing cities and subscriber additions, rather than just geographic expansion. Bamania pointed to the large base of rental apartments and low penetration of furniture rentals as signs of long-term potential, describing the opportunity as "almost like a decadal business."
The home furniture and appliances rental market was valued at ₹1,550 crore in 2025 and is projected to reach ₹6,030 crore by 2030, according to Redseer. Rentomojo’s rival Furlenco was acquired by Sheela Foam in 2023 after facing funding and operational challenges.
Bamania reflected on the early years, saying the company had to create the market from scratch, investing in customer education while absorbing losses to build its asset base. He said the company knew it needed to reach a stage where older asset cohorts would mature and drive profitability.
The IPO documents filed with the regulator ahead of the listing provided the financial figures cited in this report.
