RentoMojo raises $10 million capital in a Series B funding round

RentoMojo, the furniture and consumer durables rental start-up, has raised $10 million capital in a series B funding round from private equity investor Bain Capital Ventures and fintech entrepreneur Renaud Laplanche. Existing investors Accel Partners and IDG Ventures also took part in the funding round. Geetansh Bamania, CEO of RentoMojo, said that “Bain coming in at this stage and Renaud’s faith in us is a big confidence booster. I think people will now move from seeing us an e-commerce company to a fin-tech consumer leasing firm”.

Founded in 2014, the startup offers home durables from sofas to appliances like washing machines and even two-wheelers on rent. The service is pitched as an alternative to buying home durables. Since its launch, it has grown to eight cities, including Delhi, Pune and Mumbai, with ~INR45-50 crore worth of products already handed out on rent. The leases about 16,000-20,000 items every month and has over 25,000 active customers currently.

The startup is expected to use 1/3th of the capital towards marketing and branding, while the rest will be invested across lateral hiring and increasing its products catalogue. Bain Capital stated that “In India’s credit-constrained economy, RentoMojo has built a defensible beachhead in multiple categories in an underserved sector in the subscription economy, with a capital-efficient two-sided marketplace, no balance-sheet risk and network effects at scale”.