Founded in November 2014 by IIT Madras graduates Geetansh Bamania and Ajay Nain, Bengaluru-based furnishing solutions platform, Rentomojo provides ‘pay as you use’ rentals across home, office and automobile verticals. Categories on its platform include Appliances, Furniture, Packages, Kitchen and Home utility, as well as two wheelers. Besides offering individual items including beds, microwaves, television, tables and water purifiers on rent, RentoMojo also gives combined packages on items.
The startup has raised $2 million in Pre-Series A round from Accel Partners and IDG Ventures India. As part of the deal, Venkatesh Peddi from IDG Ventures India and Prashanth Prakash from Accel Partners are joining the company’s board of Directors. The funds will be used to expand its presence across the country. It had raised seed capital from London-based investors last year.
Currently it operates in four cities – Bengaluru, Mumbai, Delhi NCR and Pune. The company lets users rent furniture and home furnishings for a minimum period of three months.
“We are giving lifestyle rental access for anybody who is a tenant with a line of sight of 11 months, typically working professionals in the age bracket of 20-35 years,” said Geetansh Bamania.
Prior to start this venture, Geetansh worked with retailers such as Flipkart and Pepperfry. He is responsible for the overall strategy, execution and growth of the company. Ajay Nain had work experience with Himalaya Healthcare and Daimler-Mercedes Benz and at Rentomojo, he is responsible for overseeing operations. The company employs over 50 people as of now.
Rentomojo claims that it currently has around 2,000 active subscribers on the platform with a target of reaching 6,000 by March next year. It is growing at 40-45% month-on-month.
The startup does not own any of the items that it puts out on rent, instead it has tied up with a few suppliers who want to earn rental income. This model attracted IDG Ventures India to the business model. “They are very clear that they want to build an asset-light model,” said Venkatesh Peddi, executive director at IDG Ventures India.
Talking about their monetization model, Geetansh said, “Ours is a monthly rental model wherein a customer can order stuff by paying a nominal deposit and then pays a monthly rent just like they do when they rent a house.”
The company will be launching in a few more cities and add some more categories to the portfolio. It plan to invest more in technology and hire more manpower to service the growing demand.
Another startup in the space which has got funding is Furlenco, an online venture for renting furniture for residential use, secured $6 million in series A round of funding from Lightbox Ventures. The other players in the online furniture space include Urban Ladder, FabFurnish, HomeLane, LivSpace, Pepperfry, Custom Furnish etc. While real estate firms like Housing.com, Magicbricks and CommonFloor are providing flats and houses on rent, the startups which offer furniture and home decor services on rent appear to be rising.