Rentomojo Raises $25 Million in Funding Round Led by Edelweiss Discovery

Furniture and appliance rental startup Rentomojo has raised $25 million in a funding round led by Edelweiss Discovery. This is the company’s largest funding round to date and will be used to expand its business and enter new markets. Rentomojo has been profitable for the past 10 quarters and serves close to 450,000 customers. The company competes with several other furniture and appliance rental companies, including Furlenco and Pepperfry.

In Short:

• Furniture startup Rentomojo has raised $25 million in its largest funding round to date.
• Rentomojo boasts profitability for the past 10 quarters and serves nearly 450,000 customers across India.
• This funding round, led by Edelweiss Discovery, positions Rentomojo for continued growth in the flourishing furniture rental market.

What is Rentomojo?

Rentomojo, a profitable startup for the past 10 quarters, offers a unique service of renting furniture and appliances. Since its establishment in 2014, it has expanded its operations across 16 cities in India. With a customer base of approximately 4.5 lakh, Rentomojo has successfully carved a niche for itself in the rental market. Its business model caters to the evolving needs of consumers, particularly millennials and young professionals who prefer flexibility and convenience over ownership.

Check out Rentomojo’s Official website

What does RentoMojo do?

Rentomojo operates by offering a diverse range of furniture and appliances for rent. Customers can explore their offerings either online or in their physical showrooms. After selecting the desired items, customers can choose a rental plan that suits their requirements. The flexibility of Rentomojo’s rental plans is a key feature, allowing customers to rent items for as short as a month or for an extended period. This model caters to the evolving consumer preferences for flexibility and convenience over ownership.

How to Use Rentomojo?

Here are the steps to use the Rentomojo app:

Step 1: Download The App From the Google Play Store Or App Store.

Step 2: Open The App And Sign Up To Create A New Account.

Step 3: Explore And Choose The Items You Want To Rent And Add To Cart.

Step 4: Choose A Rental Plan That Fits Your Needs, And Proceed To Checkout.

Step 5: Make The Payment And Soon Your Rented Items Will Be Delivered To Your Doorstep.

The Rentomojo app is available for both Android and iOS devices.

Benefits of Renting Furniture From Rentomojo

Renting furniture from Rentomojo offers several benefits:

1. Quality Products: Rentomojo provides high-quality products that undergo strict quality checks.
2. Flexibility: Customers can choose from flexible rental plans and easily exchange products.
3. Free Relocation: If you’re changing your house or city, Rentomojo will relocate your rented products for free.
4. Free Maintenance: Rentomojo takes care of maintaining the rented products, keeping them in excellent condition.
5. Easy Returns: Customers can return the products anytime without any hassle.
6. Affordability: Rentomojo offers affordable rental plans with the convenience of monthly billing.
7. Customer Support: Rentomojo provides quick responses and assistance for orders, delivery, refunds, and payments.

Different Rental Plans Available on Rentomojo

Rentomojo offers a variety of flexible rental plans to cater to different needs:

• Furniture Rentals: Starting at just Rs.59 per month.
• Appliance Rentals: Starting at Rs. 299 per month.
• Electronics Rentals: Starting at Rs.149 per month.

These plans are designed to provide flexibility and affordability to the customers. You can rent any item for a few months or a few years, depending on your needs. The company also offers the convenience of easy returns, allowing you to pay only for the time you use the product and close your subscription without any hassle.

Who is Edelweiss Discovery?

Edelweiss Discovery is a fund under Edelweiss Mutual Fund, a leading Asset Management Company in India. The Discovery Fund Series I aims to invest in leaders of emerging sectors in mid-stage businesses. It targets companies with a revenue run-rate of 50 to 500 Crores and a growth rate of 20%+ CAGR. The fund has a positive bias towards new economy businesses and seeks to maximize returns while minimizing risk.

Popular Items Rented on Rentomojo

Here are some of the popular items rented on Rentomojo:

1. Living Room Furniture: This includes sofas, chairs, stools, center tables, TV units, and display cabinets.
2. Bedroom Furniture: Items like beds, mattresses, bedside tables, wardrobes, and dressing tables are popular.
3. Dining Room Furniture: Dining tables, dining chairs, teapoys, and bar cabinets are frequently rented.
4. Appliances: Rentomojo also offers appliances like microwaves, televisions, washing machines, and water purifiers.

These items cater to a wide range of needs, making Rentomojo a popular choice for rental services.

Who Led Rentomojo’s Funding Round?

The recent funding round for Rentomojo, a prominent furniture and appliance rental startup, was led by the Edelweiss Discovery Fund Series–I. This fund is known for its strategic investments in mid-stage businesses that are leaders in emerging sectors. Alongside Edelweiss, existing investors such as Chiratae Growth Fund and Magnetic also participated, demonstrating their continued faith in Rentomojo’s business model. This collective investment will undoubtedly propel Rentomojo’s growth and expansion in the rental market.

How Will Rentomojo Use the $25 Million Funding?

Rentomojo, the Bengaluru-based furniture and appliance rental startup, plans to use the $25 million funding to further build on the appliances and furniture rental category. The capital raised will be used for expansion efforts, including broadening the geographical footprint and enhancing product offerings in the appliances and furniture rental sector. This strategic utilization of funds is expected to strengthen Rentomojo’s market position and enable it to serve its customers better by offering a wider range of products and services.

Conclusion

The recent funding round led by Edelweiss Discovery is a testament to Rentomojo’s successful business model and its potential for further growth. As the company continues to build on the appliances and furniture rental category in India, it will be interesting to see how this impacts the broader market.

FAQs

Is Rentomojo free?

No, Rentomojo works on a subscription-based model where customers can choose from various subscription plans every month.

What products and services does Rentomojo offer?

Rentomojo offers a wide range of products for rental, including furniture, appliances, and electronics such as beds, microwaves, televisions, tables, and water purifiers.

Who is the founder of RentoMojo?

Rentomojo was founded by Geetansh Bamania.

What payment options are available on Rentomojo?

Rentomojo accepts various payment methods including Credit cards, Debit cards, net banking, UPI, and Wallets.

Where does Rentomojo currently operate in India?

Rentomojo operates in several cities in India including Bangalore, Mumbai, Pune, Delhi, Noida, Gurgaon, Hyderabad, Chennai, Ahmedabad, Mysore, Jaipur, Faridabad, Ghaziabad, Gandhinagar, Chandigarh & Kolkata.