Bengaluru-based furniture rental startup Rentomojo has raised Rs 210 crore ($25.3 million) led by Edelweiss Financial Services’ private equity fund Edelweiss Discovery Fund-I, as a part of its ongoing Series D & D1 round.
Existing investors venture capital firm Chiratae Ventures and Rajeev Chitrabhanu’s advisory lead investment platform Magnetic also participated in the round.
Operated by Edunetwork Pvt Ltd, the company allows users to rent furniture, home furnishings and appliances, and bikes. The company claims to have served over 450,000 customers since its inception, and has a presence in about 16 cities.
The latest capital infusion serves as a launchpad for the company, Founder and Chief Executive Geetansh Bamania said in a statement.
“The company offers a smart home-furnishing alternative to working professionals who value the freedom of flexibility in their housing options,” said Ashish Agarwal, managing
partner of Edelweiss Discovery Fund. “This category has tremendous potential for growth, and Rentomojo’s leadership team is well-positioned to continue to profitably grow and lead this segment.”
Rentomojo competes with the likes of Furlenco, which last year found a strategic backer Sheela Foam, the owner of the Sleepwell mattress brand. Sheela Foam acquired a 35% stake in Furlenco for Rs 300 crore, valuing the startup at Rs 857 crore ($104 million). It is likely that the company took a valuation knock during the fundraise with pre-money valuation ranging around Rs 557 crore, down from Rs 750-800 crore, amid an environment that has been tough for startups to raise external capital.
While Furlenco is not profitable yet and has faced significant challenges including a restructuring process, resulting in the layoff of 180-200 employees last year, Rentomojo claimed to be profitable for the last 10 quarters.
The company reported net profits of Rs 6.2 crore in last financial year, over an operating revenue of 121 crore.
Rentomojo’s last funding round was in 2021, when it secured Rs 15 crore as a part of its Series C round led by Accel, while getting another Rs 130 crore in debt.
The startup raised $2.97 million in June 2020 from Pratithi Investment Trust, the family investment vehicle of Infosys co-founder Kris Gopalakrishnan, Shri Investments, and angel investor Gautam Dalmia. Prior to that, in May 2020, it raised a $3.23 million tranche from Accel India, Chiratae Ventures, Bain Capital, BCIP Venture Associates and French-American entrepreneur Renaud Laplanche.
