Economic Times
 
After an unprecedented downturn during the Covid-19 pandemic, Accel-backed furniture and electronics rental startup Rentomojo has scripted a noteworthy comeback. This journey made Rentomojo the winner in the Comeback Kid category at the ET Startup Awards.
 
IPO plans: Rentomojo is gearing up to file for an initial public offering (IPO) in the next 18 months, the company's founder and CEO, Geetansh Bamania, said.
 
The company turned profitable in FY23 and has stood out among competitors that have faced difficulties in making unit economics work in a sector that Bamania says is akin to "trekking and not a marathon" because of the depth of the industry.
 
Financials: Rentomojo is estimated to have closed FY24 with nearly Rs 200 crore in revenue, Bamania said, with a profit after tax (PAT) of around Rs 22 crore. In FY23, it registered revenue of Rs 121 crore and net profit of Rs 6.2 crore.
 
He also pointed out that the company’s growth will be linked to the country’s macroeconomic growth, which results in job creation and urbanization.
 
On industry challenges: “This business is definitely tough. It’s a combination of three different infrastructures – ecommerce (to have warehousing, logistics, and delivery); lending (we have to collect the monthly subscription fees while working on NPAs and recover products); and the soul of our business is refurbishing (which you would find in companies that resell used smartphones),” he said.