We often see this debate of buying vs renting these days with the rise of finance influencers. Well, the debate of renting vs. buying has gained massive attention these days and there are some companies that have built on top of the renting concept. People usually rent the vehicles, land, or house nowadays for office spaces and hostels. When the capital required is high, we often tend towards the renting concept. But what if we can rent a fridge, washing machine, AC, sofa, and bed? It sounds interesting, right? Yeah, if you are living in any Tier-1 city, you might have heard of this concept, but if you haven’t heard of this concept, yeah, it is happening already in India. There are some companies that are older than 10 years doing this.
Let me introduce you to RentoMojo, a startup that’s been quietly building its empire by renting out furniture and appliances for more than 10 years! Yes, you read that right. A decade-old startup in India that’s not only growing but also profitable, which is super rare in today’s startup world.
But Wait, Does Renting Appliances Even Make Sense? That’s the big question, right? Why would someone rent a fridge or a bed when they can just buy one? Well, here’s the thing: it’s not always about owning; sometimes it’s about comfort, flexibility, and saving money upfront. For example, you’re moving to a new city for a job. Do you really want to spend ₹60,000 just to set up a fridge, bed, washing machine, and sofa? What if you stay for just a year and have to sell everything before you leave? Renting makes life easier in these situations. You get everything delivered, installed, and ready to use with zero stress. Plus, if something breaks, the company fixes it. There is no hassle associated with repairs. No extra cost. Also, appliances like washing machines or air conditioners can be heavy on the budget in the initial days of your career. Renting them for ₹400–₹1000 per month sounds way smarter than dropping ₹25,000+ in one go. And the best part is you can upgrade anytime. So yeah, renting totally makes sense, especially if you’re in a city where life moves fast and plans keep changing.
So, now the next question is, are people really utilizing these services? Right? Well, let’s delve into the RentoMojo company to understand this in and out.
RentoMojo was founded in 2014 by Geetansh Bamania, an IIT Madras alumnus. While he had a strong early team with him. Before starting RentoMojo, he worked with companies like Flipkart, Pepperfry, and Accel Partners, which gave him deep insight into India’s e-commerce and startup ecosystem. Today RentoMojo has become one of the biggest players in this space. According to the sources, as of January 2024, the company had a subscriber base of around 1.5 lakh, and they served over 450,000 people. They are actively operating in over 16 cities.
Now that we know what RentoMojo does, the next big question is how do they actually earn from all this renting? It’s quite simple. RentoMojo follows a monthly rental or subscription model. You pick the items you need, select the rental duration (3, 6, 12, or 24 months), and pay a fixed amount every month. This monthly rent is the company’s primary source of income. For example, a sofa might cost ₹300/month, while a fridge could be ₹800/month. It looks like small amounts for the customer but steady income for the company. The longer your rental plan, the more RentoMojo earns. Customers who choose 12- or 24-month plans are less likely to cancel early, which means higher earnings and lower operational hassle for the company.
Apart from individual customers, RentoMojo also makes money through bulk rentals to corporates, startups, and hostels. Imagine a company setting up a new office; they might rent 50 desks and chairs in one go. These bulk orders bring in big-ticket revenue. There’s also income from add-ons and upgrades. Customers often come back to rent more items, like an extra chair or a better mattress, which adds to the revenue over time. Some customers even decide to buy the rented items at the end of their plan. RentoMojo offers a buyout option with discounted prices, which becomes an additional revenue stream. Because of these revenue sources, they are willing to earn crores in revenue.
If we look at the numbers, it says it all. RentoMojo had a strong year in FY24. The company’s revenue grew by 60%, and its profits more than tripled during this period, which is a big deal in the startup world. RentoMojo also raised $25 million in funding in February 2024, after a long gap of over two and a half years. To give you some numbers, their revenue from operations went up from ₹121 crore in FY23 to ₹193 crore in FY24, according to their financial filings with the Registrar of Companies. And the company has reported a profit of about ₹22 crore, according to the sources.
And the company is having hard competition from players such as Furlenco and other players. They are giving tough competition by growing at a decent rate. Investors are backing these startups as the furniture industry is growing at a decent rate. Throughout the period since inception, the company has raised over $98.4 million in funding from various well-known investors across the globe.
What was once seen as a backup option has now become a smart lifestyle choice. In a world where flexibility, comfort, and financial freedom matter more than ever, RentoMojo has hit the sweet spot. It’s solving real-world problems for students and professionals and doing it profitably. As the rental economy continues to grow, RentoMojo is definitely a brand to watch.
Also Read: Why Investors Are Betting Big on India’s HealthTech Ecosystem
