Bangalore based startup Rentomo has raised a seed funding of $100,000 from Shiva Ashok and an unnamed UAE based investor. Shiva is an executive with UK-based project engineering consultancy Amec Foster Wheeler.
The company plans to use the funds for expanding its operations in Bangalore before moving to other cities. He said, “We currently handle 250 transactions a month in Bangalore. We handle end-to-end operations here with the help of third party logistics players.”
Rentomo works on peer to peer renting, it bridges lenders and borrowers. Founded in May 2015 by Anshul Johri Rentomo helps its users in renting out their rarely used things or borrow items if the user wishes to use once or twice.
Anshul was an engineer at Amazon before starting the venture and claims to have 4000 active users in Bangalore, with 1000 across Pune, Lucknow and Delhi.
Their team consists of five people as of now, including Anshul, Shiva and three more who handle web, mobile app, marketing and operations respectively. The company is focusing on boosting popular categories like travel, sport & fitness, motorbikes & electronics. Anshul added that “Every category has their own challenges and we need to understand the customer behavior for each category. We have plans to touch our user base to 10K in next 3 months and 2.5K items listed on our platform.”
Anshul stated that they are expecting a bigger round of investment like of $673,000 next month from individual investors from big and famous Indian internet companies.
When asked about if he has any particular event in mind that inspired him more towards the company, he said “In spite of our focus in Bangalore, we successfully did transactions in Delhi, Gurgaon, Pune and Lucknow as well. I remember this story from Lucknow when a person wanted to hire a wheelchair for 2 days and he hired successfully through a Rentomo user. That is the power of social sharing.”
The renting business is not that easy to handle, the company has to take care of details like security, payment and maintenance. Talking to Anshul on the concern, he explained that they have so far not faced any issues. However, this platform works on the basis of trust between the owner and the borrower. Also they are now building a social media-based ‘trust network’ in the backend to improve the comfort factor.