Furniture and appliances rental startup Rentomojo delivered a strong financial performance in the financial year 2024–25 (FY25), reporting sharp growth in both revenue and profit. The company’s results reflect rising demand for subscription-based rentals, better use of assets, and improved cost management.
According to media reports, Rentomojo’s revenue from operations increased by 38% year on year, reaching Rs 266 crore in FY25, compared to Rs 193 crore in FY24. At the same time, the company’s profit rose by an impressive 92%, highlighting the effectiveness of its operational and financial strategies.
Growth Driven by Subscribers and Asset Efficiency
The company’s growth in FY25 was mainly supported by higher subscriber additions and improved asset utilisation. Rentomojo has been focusing on ensuring that its rental assets are used more efficiently across cities, which has helped boost revenues without proportionately increasing costs.
Between FY23 and FY25, the company’s net rental revenue recorded a compound annual growth rate (CAGR) of 48.24%, showing strong and consistent momentum over the past three years. This growth reflects rising acceptance of rental models among urban consumers, especially young professionals and families looking for flexible and affordable options.
Subscription-Led Business Model
Founded in 2014, Rentomojo operates a subscription-led business model that allows customers to rent furniture, appliances, and other household products instead of buying them outright. The company initially focused on furniture and large appliances but has since expanded into newer categories such as water purifiers and other essential home solutions.
This model appeals to customers who value flexibility, lower upfront costs, and convenience. Subscribers can choose rental plans that suit their needs, making it easier for people who frequently relocate or prefer not to invest heavily in ownership.
Expanding Reach Across India
Rentomojo currently serves more than 2.2 lakh live subscribers across the country. The company manages a large inventory of over 7.7 lakh rental assets, which includes furniture, appliances, and other products.
Its operations span 23 cities, supported by 71 experience stores. These physical stores allow customers to see and experience products before renting them, helping build trust and improve customer engagement. The combination of online convenience and offline presence has strengthened Rentomojo’s reach in key urban markets.
Strong Improvement in Profitability
Rentomojo’s profitability also improved significantly in FY25. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 118.41 crore, compared to Rs 78.23 crore in FY24. This increase highlights better cost discipline and operational efficiency.
The company reported a return on capital employed (ROCE) of 25.1% during the year. This strong return was driven by strategic reinvestment into refurbishment, automation, and initiatives aimed at improving capital efficiency.
Focus on Circular Economy and Sustainability
One of Rentomojo’s key strengths is its circular economy-led operating model. Instead of using products only once, the company focuses on refurbishing and reusing rental assets multiple times. This approach improves asset utilisation while reducing waste and supporting sustainability goals.
By investing in refurbishment centres and automation, Rentomojo has been able to extend the life of its products and maintain quality standards. This strategy not only lowers costs but also strengthens the company’s long-term resilience in a competitive market.
Leadership View on Performance
Founder and Chief Executive Officer Geetansh Bamania attributed the company’s strong performance to disciplined execution and a clear focus on refurbishment-led growth. He said the company is building a consumer technology platform that prioritises subscriptions while solving real problems for customers.
According to him, Rentomojo’s ability to deliver sustained profitability shows that its business model is both scalable and financially sound. The focus on customer needs, operational efficiency, and asset reuse has played a key role in achieving these results.
Strong Backing from Investors
Rentomojo has raised over Rs 650 crore through multiple funding rounds since its inception. Its most recent funding included a $25 million round led by Edelweiss, further strengthening its balance sheet and growth plans.
The company is backed by well-known investors such as Accel, Chiratae Ventures, Bain Capital, along with Edelweiss Discovery Fund and ValueQuest S.C.A.L.E. Fund. This strong investor support reflects confidence in Rentomojo’s business model, leadership team, and long-term growth potential.
Outlook Ahead
With rising urbanisation, changing consumer preferences, and growing acceptance of rental and subscription models, Rentomojo is well positioned for future growth. Its focus on efficiency, sustainability, and customer-centric offerings is expected to help the company scale further while maintaining profitability.
As the rental economy continues to expand in India, Rentomojo’s performance in FY25 marks an important milestone in its journey as a leading player in the furniture and appliances rental space.
