Rentomojo IPO Review – Well-Informed/Cash Surplus Investor May Park Moderate Funds for Medium to Long Term Rewards

Rentomojo Ltd. (RL) operates a technology-driven, full-stack direct-to-consumer (“D2C”) online rental and subscription platform for furniture and appliances in India. It is the largest online rental and subscription platform for home furniture and appliances based on live subscribers as of March 31, 2025 and as of September 30, 2025, and subscription revenue during Fiscal 2025, amongst leading home furniture and appliance rental platforms in India. (Source: Redseer Report) As of March 31, 2026, it had 253825 live subscribers spread across 29 cities in India, enabling subscribers to access home essentials through affordable, long-term and flexible subscription plans backed by a reliable and a full-stack asset-lifecycle model.

Its integrated asset-lifecycle model, spanning across category management, designing, procurement, refurbishment, servicing, reverse logistics and multi-cycle redeployment, helps it deliver a flexible living experience to modern age consumers of India. In addition, RL focuses on offering quality service, to drive subscriber satisfaction and retention. Its platform, operating through an omni-channel mechanism, combining online ordering platform and experience stores (82 experience stores across India, as of March 31, 2026), enables consumers to access furniture and appliances on a flexible subscription plan, thus eliminating the need for large upfront purchases, repair and maintenance hassles, relocation concerns, limitations on upgrading products and long-term ownership commitments.

Consumers rely on its brand to subscribe to essential home-building blocks such as beds, mattresses, washing machines, refrigerators, wardrobes, sofas, televisions, and water purifiers. It has a comprehensive portfolio of 851184 live items (“Products”) across furniture and appliances, as of March 31, 2026. The company has consistently maintained an occupancy rate of 83.34%, 82.82% and 86.43% during Fiscals 2026, 2025 and 2024, respectively, enabling capital efficiency, with sustained and predictable revenue generation, which is assessed based on the contracts entered into by the subscribers with our Company. The furniture and appliances that it offers consumers has a diverse mix of brands including Haier, Wakefit, Livpure and Duroflex as well as its own private-label brands. In Fiscal 2025, RL expanded its portfolio and launched private-label refrigerators and washing machines manufactured in partnership with Dixon Technologies (India) Limited (“Dixon”), as well as its own branded water purifiers.

India’s urban expansion has transformed the country’s economic and social landscape. Between CY2000 and CY2025, the urban population has more than doubled from approximately 292 million to over approximately 522 million as the urbanization rate climbed. This migration toward cities is driven by emerging job opportunities in global capability centres (“GCC”), growth of manufacturing and industrial clusters, and development of technology and startup ecosystems among other drivers. Rising urbanization has led to a supply-demand imbalance in the housing market, pushing property prices beyond the reach of many households. Within the rental stock in India, nearly approximately 80% is unfurnished or semi-furnished, placing the setup burden on incoming tenants. With urban tenancy averaging just approximately 1.6 years, the cycle repeats frequently: making ownership of bulky, depreciating assets economically inefficient for mobile households. These realities create powerful tailwinds for models that simplify home setup, reduce time-to-live ability, and minimize upfront cash outflow paving the way for flexible, service-oriented living solutions to thrive.

The home furniture and appliances rental industry in India represents a large and rapidly expanding opportunity, with a total addressable market (“TAM”) of approximately Rs. 695.2 billion (approximately US$ 8.2 billion) in CY2025. This market is expected to grow at a compounded annual growth rate (“CAGR”) of approximately 11% to reach approximately Rs. 1172.1 billion (approximately US$ 13.8 billion) by CY2030, driven by India’s young demographic profile, rising consumption and urban migration, increasing formal workforce participation, growing rental housing penetration, a shift towards asset-light lifestyles, and widening adoption of subscription-based consumption among young working professionals. (Source: Redseer Report) Prior to the emergence of organized rental platforms, consumers typically met their furniture and appliance requirements through outright purchase. Over the past decade, rental platforms have provided an alternative access-based option to consumers alongside traditional ownership. As of March 31, 2026, it had 835 employees on its payroll and additional 1772 contractual employees.