The great Indian new-age tech IPO queue is growing as we speak, and the newest entrant to add gravity to this frenzy is Rentomojo — a Bengaluru-based furniture and appliance rental platform.

Incorporated in 2014, the company has reportedly appointed Motilal Oswal as one of its book-running lead managers (BRLMs), marking its first step towards the D-Street. Although the startup hasn’t given a definitive timeline, there is an unspoken code among Indian startups for going public within 18 months of hiring investment bankers.

If everything falls into place, Rentomojo is set to become India’s first rental-focussed startup to shine on the bourses. But, there is something else that makes Rentomojo particularly interesting among startups planning to list on the exchanges. Well, the company has been in the black since the financial year 2022-23 (FY23).

It posted a net profit of INR 6 Cr against a revenue of INR 121 Cr in FY23. On the profitability scale, the company rose from a loss of INR 14 Cr and a revenue of INR 105 Cr.

Rentomojo posted a PAT of INR 22 Cr in FY24 and raked in revenues of INR 193 Cr, and the company expects to post a net profit of INR 40 Cr in FY25 against a revenue of INR 270 Cr.

The startup is expected to clock a profit of around INR 40 Cr in FY25, which underscores a steady financial performance ahead of its IPO ambitions.

From navigating the challenges of the subscription economy to building a sustainable business model in a capital-intensive sector, Rentomojo’s path has been anything but smooth. And with the company aiming to go public by mid next year, we couldn’t resist asking its founder, Geetansh Bamania, to share his journey so far.

Pain Pangs That Led To Rentomojo

The idea for Rentomojo emerged from Bamania’s own experience of how crucial it is for bachelors to stay asset-light.

Bamania’s story unfolds something like this: After graduating from IIT Madras, he worked with KPMG for six months and then with Flipkart for a year in Bengaluru. His stint at Flipkart inspired him to create an online skill exchange marketplace. The marketplace business failed to take off, forcing Bamania to take a once again. His stars landed him in Delhi and then Mumbai after a year.

“After staying in Delhi for not more than six months, I moved to Mumbai in search of greener pastures and joined Pepperfry in 2014,” Bamania said.

The relocation costs........

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