Rentomojo Targets ₹4,246 Crore Valuation in ₹1,256 Crore IPO
Furniture and home-electronics rental startup Rentomojo is preparing to enter India's public markets at a valuation of around ₹4,246 crore, nearly five times the valuation it secured in its last private funding round in 2024. The company's initial public offering (IPO) will open for subscription on September 9. Rentomojo has set a price band of ₹384 to ₹404 per share for the issue. At the upper end of the band, the Bengaluru-based company's valuation works out to about ₹4,246 crore. The IPO will close on September 11, with the shares expected to list on September 17.
Rentomojo IPO is largely an investor exit
The company plans to raise about ₹1,255.57 crore through the IPO. However, only ₹150 crore will come into Rentomojo through a fresh issue of shares. The remaining roughly ₹1,106 crore will come from an offer for sale (OFS), through which existing shareholders will sell part of their holdings. Investors including Accel, Chiratae Ventures and ValueQuest are among those participating in the share sale.
That makes the structure of the Rentomojo IPO notable. Less than 12% of the total issue proceeds will represent fresh capital for the company, while the bulk of the offering will provide an exit opportunity to existing investors. The ₹150 crore raised through the fresh issue is expected to support Rentomojo's business rather than simply providing liquidity to shareholders.
Valuation jumps nearly fivefold
Rentomojo's proposed public-market valuation is a significant step up from its previous private valuation of around ₹850-900 crore in 2024. At ₹4,246 crore, the company is seeking a valuation nearly five times higher than that earlier level. The increase comes after a strong improvement in the company's financial performance. Rentomojo reported a 142% year-on-year jump in net profit to ₹104.3 crore in FY26, according to the Economic Times. Its revenue for the year stood at around ₹394 crore. The numbers give investors a different picture of the rental startup compared with its earlier growth-stage years, when the company was focused more heavily on expanding its customer base and business footprint.
Rental model targets urban consumers
Rentomojo operates a subscription-based rental model covering furniture, appliances and electronics. Instead of purchasing products outright, customers can rent them for a period and pay through recurring plans. The model has found a market among consumers looking for flexibility, particularly in urban areas where people may move homes frequently or prefer not to make large upfront purchases for furniture and appliances. The company is now taking that model to the public market at a time when India's IPO market is experiencing a broader surge. Six companies, including Rentomojo, are scheduled to open their IPOs on September 9, with the combined fundraising potentially reaching ₹4,511 crore.
A closely watched public debut
For Rentomojo, the upcoming listing will put a public-market value on a business that has spent years building India's organised rental market for household products. The nearly fivefold increase from its last private valuation will be one of the key figures investors watch as the IPO opens. So will the issue structure: while the overall offering is worth more than ₹1,250 crore, Rentomojo itself is raising only ₹150 crore in new money. With subscription beginning on September 9, the IPO will provide the market with its first major test of how investors value Rentomojo's rental-led business after its rapid growth and sharp improvement in profitability.
