Rentomojo, a leading furnishing rental brand, has secured Rs 210 crore investment in its ongoing Series D and D1 round. The funding was led by Edelweiss Discovery Fund Series – I, with participation from existing investor Chiratae Growth Fund and Magnetic, founded by Rajeev Chitrabhanu. This latest funding round will fuel the company’s growth and expansion plans in India’s appliance and furniture rental market.
Partnership with Edelweiss Discovery Fund: Ashish Agarwal, Managing Partner of Edelweiss Discovery Fund, expressed excitement about partnering with Rentomojo. He praised the company’s innovative approach in providing smart home-furnishing solutions to working professionals who prioritize flexibility in their housing options. Agarwal highlighted the immense growth potential in this segment and emphasized Rentomojo’s strong leadership team’s ability to drive profitability and market leadership.
About Rentomojo: Founded in 2014, Bengaluru-based Rentomojo has emerged as a prominent rental platform for furniture, appliances, and electronics. With a customer base of nearly 450,000 spread across 16 cities, the company has established itself as a reliable partner for meeting the diverse needs of its customers. Rentomojo has also cultivated strategic partnerships with prominent lenders to ensure adequate resources for serving its growing customer base effectively.
Business Strategy and Growth: Rentomojo’s offline experience centers strategically located across major pin codes have further strengthened its presence and customer reach. Founder and CEO Geetansh Bamania attributes the company’s success to various factors, including a skilled team, efficient cost management, robust governance practices, a technology-driven approach, and an unwavering commitment to enhancing customer satisfaction.
Financial Performance: The company has reported significant growth in its financial performance, with a profit of Rs 6.2 crore in the financial year ending March 2023, compared to a loss of Rs 13 crore in the previous year. This remarkable turnaround can be attributed to Rentomojo’s focused efforts in revenue generation and prudent cost management. Despite the challenging market conditions, the firm’s revenue from operations witnessed a robust growth of 22% to reach Rs 121 crore, while total expenditure only marginally increased to Rs 117 crore.
In conclusion, Rentomojo’s latest funding round led by Edelweiss Discovery Fund marks a significant milestone in its journey towards becoming a market leader in the furnishing rental industry. With a solid financial foundation, strategic partnerships, and a customer-centric approach, the company is well-positioned to capitalize on the growing demand for flexible and hassle-free home-furnishing solutions across India.
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