With 5X growth in demand, RentoMojo eyes gross revenue run rate of Rs 200 Cr by March 2023
Profitable since October 2021, RentoMojo is operational in 16 cities and has seen 60% growth in revenue for this financial year.
Bengaluru-based serves more than 110,000 subscribers, which it says is "the largest user base in the rental furniture and appliances category worldwide".
Founded in 2014, RentoMojo is a rental platform for furniture, appliances, and electronics. The startup has seen a 5X rise in demand in FY23, with core categories of furniture and appliances driving this growth.
“We are not seeing any major shift in the category mix on the demand side. However, the ecosystem did not scale as fast as demand did. The speed of availability of debt and the production bandwidth continues to be our focus towards making this ecosystem ready to meet the ever-increasing demand for rental products,” says Geetansh Bamania, Founder and CEO of RentoMojo.
RentoMojo has raised Rs 70 crore in multiple rounds in the past five months and has an additional debt line of over Rs 40 crore on the table for this fiscal year. Since its inception, the company has raised over Rs 620 crore through debt and equity funding.
“We are certain that this financial year we will close at an exit gross revenue rate of Rs 200 crore, which will be 2X of last year's revenue rate,” Geetansh says.
A profitable company
RentoMojo has been profitable for the last 14 months. The company also has reached a PAT (profit after tax) of Rs 4 crore for the trailing 12 months.
“What continues to drive our growth is the flexibility, affordability, and sustainability we offer consumers. Our effort to lead the ecosystem to find innovative solutions will continue. After all, we are building a new purchase solution,” Geetansh says.
Geetansh Bamania, CEO, Rentomojo
RentoMojo is at present operational in 16 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Chennai, Mysore, Kolkata, Gurugram, Delhi, Noida, Faridabad, Ghaziabad, Jaipur, Chandigarh, Gandhinagar, and Ahmedabad.
The startup generated a revenue of Rs 105 crore in FY22 compared to Rs 106 crore in FY21, and says it has witnessed 60% increase in revenue in FY23.
Its audited losses for FY22 were down to Rs 13 crore from Rs 70 crore in FY21. It also expects to exit FY23 at around Rs 6 crore PAT.
Speaking about the company's revenue, the founder says, “One of the strengths of our business is its revenue predictability. FY21 and FY22 revenue numbers pertain to the financial years when the pandemic saw two peaks. Several companies saw massive fluctuations in top line during the period, but we were able to retain our revenue numbers.”
“Because of this strength of predictability of revenue, we could come out positively and turn profitable by focusing on automations across the board and closing down some of the experimental categories and channels,” Geetansh says.
(The article was updated to fix style issues.)
Edited by Affirunisa Kankudti