Management

• Geetansh Bamania (Chairperson, Managing Director, and Chief Executive Officer)
• Ketan Krishna (Executive Director and Head People & Governance)
• Prashanth Prakash (Non-Executive Nominee Director)
• Dr. Niddodi Subrao Rajan (Independent Director)
• Deepali Nair (Independent Director)
• Dr. Sandesh Madhukar Kirkire (Independent Director)
• Hakim Fakhruddin Ujjainwala (Chief Financial Officer)

Use of Proceeds

Competitive Strengths

Market Leadership and Scale-Driven Organic Demand Rentomojo is the leader in India’s organised home furniture and appliances rental market, excluding water purifiers, with an estimated 42% to 47% share of subscription revenue in FY25 and roughly 50% to 55% share of the organised market based on active subscribers. The company had 253,825 live subscribers across 29 cities as of March 31, 2026, highlighting its scale and leadership in the category. Strong brand recall and word-of-mouth have also supported organic traffic, which accounted for 61.37% of traffic in FY26, while an average subscription period of around 18 months and a 50.41% repeat order rate highlight strong customer stickiness.

Integrated E-Commerce, Subscription and Re-Commerce Flywheel Rentomojo's integrated model combines e-commerce, subscription management and re-commerce, allowing it to share logistics, warehousing and servicing infrastructure across the customer lifecycle. Its reverse-logistics network enables returned assets to be collected alongside new deliveries, improving utilisation and lowering unit costs. The company also tracks and refurbishes individual assets, allowing them to be redeployed across multiple customer cohorts and enhancing lifetime asset economics.

Long Asset Life and Strong Cohort Economics Regular maintenance, refurbishment and preventive servicing enable Rentomojo to extend the useful life of its assets to approximately 10 years. Older cohorts continue to generate meaningful revenue, with 56.12% of the FY17 cohort and 60.92% of the FY18 cohort still active as of March 31, 2026. The FY17 and FY18 cohorts have generated 5.12x and 4.49x revenue multiples, respectively, on their original asset cost, highlighting the strong economics of asset reuse.

Proprietary Technology as an Operating Moat Rentomojo has developed an in-house technology stack covering subscriber management, logistics and risk assessment. Mojodesk manages the subscriber lifecycle, while MojoVaahan uses AI-enabled logistics optimisation to improve routing and truck utilisation. Its machine-learning based underwriting system has also strengthened collections, with revenue realisation efficiency reaching 99% in FY26.

Scaled D2C Brand with Direct Customer Reach The Company has established itself as a scaled Indian D2C product commerce brand, leveraging its direct-to-consumer model to build a strong customer base and recurring relationships. Its integrated platform, subscription-led model and direct customer engagement enable greater control over the customer experience, pricing and product lifecycle, while supporting recurring revenues and efficient asset utilization.

Key Risks & Concerns

Uninsured Assets at Subscriber Locations Rentomojo insures only assets held at warehouses and experience stores, while assets deployed at subscriber premises remain uninsured. With 253,825 subscribers as of March 31, 2026, damage, theft or non-recovery could result in losses for the company. Overall, only 53.92% of the total PPE book value was insured in FY26.

Transit, Warehousing and Fire Risks The company's bi-directional logistics network for bulky assets exposes it to transit damage and operational risks. Warehouse operations also carry fire and disruption risks. A June 10, 2026 fire at its Noida warehouse resulted in an estimated ₹110.20 million loss and led to legal and indemnification disputes with the sub-lessor.

Subscriber Defaults and Early Cancellations Rentomojo's recurring revenue model depends on timely monthly payments. Subscriber defaults and early cancellations can reduce cash-flow visibility while increasing reverse-logistics and refurbishment costs. As of March 31, 2026, credit-impaired trade receivables stood at ₹218.94 million.

Geographic Concentration Rentomojo's revenues remain concentrated in a few metropolitan markets, with its top 10 cities contributing 89.51% of operating revenue in FY26. High exposure to markets such as Bengaluru, Mumbai and Hyderabad increases the impact of any local economic slowdown or competitive pressure.

Product and Supplier Concentration The company remains heavily dependent on furniture and appliances, which contributed 97.90% of revenue in FY26. It also has supplier concentration, with its top five asset suppliers accounting for 12.18% of total capital and operating expenses. Any disruption involving key suppliers or contract manufacturers could affect product availability and growth.

Outlook and Valuation

The core thesis is that India’s rising housing costs, largely unfurnished rental homes and high workforce mobility are creating a structural need for furniture and appliance rentals. This trend is further supported by younger consumers’ growing preference for flexibility and access over ownership, while renting offers financial savings, convenience and lower relocation and maintenance hassles for short-term users. With the current organised rental market still significantly smaller than the estimated TAM, the industry has substantial headroom for growth as adoption increases and the market becomes more formalised. At the price band of 384 to 404 the company is trading roughly at a PE of 36 to 38x. Considering the structural growth prospects the valuation seems to be fair we recommend SUBSCRIBING to the issue, with potential for listing gains as well as medium- to long-term value creation.