RentoMojo’s Post-IPO Test: Can The Flywheel Keep Going?

India's startup IPO market continues to garner attention as one listing after another takes place. Furniture rental startup RentoMojo has recently seen its IPO subscription numbers attract significant investor interest. The ₹1,256 Cr issue closed with an impressive 72.88X overall subscription, led by strong participation from Qualified Institutional Buyers (QIBs) and retail investors. The grey market also saw RentoMojo shares commanding a premium of around 37%.

RentoMojo's operating revenue grew 45.5% to ₹387 Cr in FY26, while profit after tax jumped nearly 142% to ₹104.3 Cr. This growth is attributed to a 45.5% increase in operating revenue from ₹266 Cr in FY25. The company's asset-to-revenue "flywheel" model plays a significant role in this success, with a large number of live items (8.51 Lakh) generating revenue throughout their tenure. The company estimates that its furniture and appliances can remain useful for approximately 10 years.

The company's supply chain infrastructure, operations systems, and technology layer work together to tie these three engines: ecommerce, subscriptions, and recommerce. RentoMojo's market position in the home furniture and appliance rental market grew from around ₹350 Cr in 2021 to ₹1,550 Cr in 2025, with an estimated 42-47% share in FY25. The market is expected to reach about ₹6,030 Cr by 2030.

However, RentoMojo's business model also comes with complexities. The company incurs costs related to logistics, manpower, refurbishment, and performance marketing as customers rent, use, and return the assets. Maximising profits while maintaining an efficient asset utilisation system will be crucial for RentoMojo's growth. Investors will be closely monitoring the quality of RentoMojo's profits, including cost recovery, depreciation, and asset turnover, as the company continues to expand its asset base and subscriber count.