Rentomojo FY24 profit up over 3X on the back of strong demand
Rentomojo said its growth was helped by strengthening in its recurring revenue streams, effective occupancy levels and high repeat rates.
Furniture and appliance rental company Rentomojo on Monday said its profit after tax more than trebled to Rs 22 crore in FY24 from Rs 6 crore in the previous year.
The company posted a 60% rise in its total net revenue to Rs 193 crore mainly driven by strong customer demand and effective occupancy levels, it said in a statement. Growth was helped by a 45% YoY increase in average items deployed.
Average items deployed refers to the percentage of rental items (of total managed items) that are actively rented out at any given time.
Bengaluru-based Rentomojo’s EBITDA (Earnings before interest, taxes, depreciation and amortisation) more than doubled to Rs 66 crore suggesting strong operational efficiencies while scaling an occupancy led business, according to a press release.
“We've scaled rapidly by leveraging automation in a very high operational intensive business and disciplined cost management, enabling sustainable growth and increased profitability,” said Geetansh Bamania, Founder and CEO, Rentomojo.
“With the next few decades expected to be marked by high economic growth driven by urbanization and rising opportunities in metros and Tier I and II cities for young, mobile Indians, we remain bullish on the shift toward flexible solutions over ownership,” he added.
Rentomojo, founded in 2015, competes with Furlenco and City Furnish. It flagged strengthening in its recurring revenue streams with longer average subscription periods and high repeat rates. Non-committal subscription models, bundled service offerings like free relocation and free repair, and enhanced customer support helped it grow.
Edited by Affirunisa Kankudti