RentoMojoThe Story
RentoMojo has set a price band of ₹384 to ₹404 a share for an initial public offering of ₹1,255.57 crore. At the upper end the company would be valued at about ₹4,246 crore, on a post-issue equity base of roughly 10.51 crore shares.
The issue opens on 9 September and closes on 11 September, with anchor bidding on 8 September. Allotment is expected on 15 September and listing on the BSE and NSE on 17 September. The retail lot is 37 shares, requiring ₹14,948 at the upper band.
The composition is weighted heavily towards existing shareholders. Only ₹150 crore is a fresh issue. The remaining ₹1,105.57 crore is an offer for sale of about 2.74 crore shares, roughly 88 per cent of the total. Sellers include Accel India IV (Mauritius), Edelweiss Discovery Fund Series I, IDG Ventures India Fund III and ValueQuest S.C.A.L.E.
Half the net offer is reserved for qualified institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail, with an employee reservation of up to ₹2 crore. Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are book-running lead managers.
The company reported FY26 profit after tax of ₹104.2 crore on operating revenue of ₹387 crore. At ₹404 a share, that implies a price-earnings multiple of about 40.7 times and a price-to-book of 14.1 times.
As of 31 March, RentoMojo had 253,825 live subscribers across 29 cities, 851,184 live items and product occupancy of 83.34 per cent, operating 82 experience stores and 20 warehouses. It holds an estimated 42 to 47 per cent share of India's organised online furniture and appliance rental market by subscription revenue.
Why It Matters
The published multiple of 40.7 times uses reported FY26 profit of ₹104.2 crore. That figure includes a one-time tax credit of ₹36.6 crore.
Recurring earnings were therefore closer to ₹67.6 crore. Against a market capitalisation of ₹4,246 crore, that is a multiple of roughly 63 times rather than 41. The headline number understates what buyers are paying for the operating business by more than half.
This is not concealment. The tax credit is disclosed in the prospectus. But every valuation table circulating this week carries 40.7, because that is what reported profit produces, and a first-time investor comparing multiples has no particular reason to look further.
The second figure worth holding is the split. Of ₹1,255.57 crore, the company keeps ₹150 crore. The other ₹1,105.57 crore goes to Accel, Edelweiss, IDG Ventures and ValueQuest. Eighty-eight per cent of this offering is an exit.
For an asset-heavy business that matters more than usual. RentoMojo buys furniture and appliances and rents them repeatedly, so growth requires buying more inventory. A ₹150 crore fresh issue against a ₹4,246 crore valuation funds relatively little of that. The capital raised is small. The liquidity delivered to early backers is not.
The Strategic Read
Read against the week, this is the same story arriving in a different form.
Indian private equity and venture exit value fell 83 per cent year on year in July. SoftBank placed ₹1,650 crore of Meesho on Thursday. August saw ₹26,337 crore of block deals across twelve companies. The exit route has reopened and it runs through public markets. An IPO that is 88 per cent offer for sale is that mechanism operating at the point of listing rather than after it.
There is nothing improper in that. Accel first backed RentoMojo around a decade ago, and a fund holding an asset that long is entitled to sell. But anyone buying into this issue should understand what they are funding, which is mostly a transfer of ownership rather than an expansion of the business.
The valuation question turns on whether growth holds. Revenue grew 45.5 per cent in FY26, which makes 63 times recurring earnings defensible if that rate continues. The complication is that the EBITDA margin narrowed from 43.6 per cent to 41.5 per cent while it did, because expenses grew faster than revenue. Performance marketing rose 86 per cent. Growth was purchased.
Occupancy is the number to watch afterwards. It moved from 82.8 to 83.34 per cent, which is stable rather than improving, and occupancy determines whether an asset-heavy rental business earns from its inventory or merely warehouses it. Furlenco, its nearest competitor, expanded its margin over the same period while growing revenue faster.
The grey market premium sits around ₹45, an indicated 11 per cent gain. That will shape how the first day reads. It says nothing about the second year.
A category that took more than a decade to reach profitability is now asking public markets to price it as though profitability is settled. It may well be. The number that answers it is occupancy, reported quarterly from here.
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