Furniture rental firm Rentomojo said it has raised Rs 145 crore in debt and equity. Of the total funding, Rs 130 crore was raised from a clutch of large institutional players the remaining Rs 15 crore is equity raised from existing VCs such as Accel and Bain Capital among others.
So far, the Bengaluru headquartered firm has has raised a total of ₹600 crore in debt and equity. The comapny said it turned profitable in October and reported an annualised revenue of over ₹100 crore.
Founded in 2014 by Geetansh and Ajay Nain, the startup started renting out furniture in core category including beds, television and washing machine, among others. During the pandemic company’s work-from-home (WFH) range grew 25 percent from 9 percent in pre-pandemic levels. Earlier in March,the company raised Rs 10 crore ($1.3 million as per current exchange rates) in a fresh tranche of the ongoing Series C round of funding from two returning investors.
Speaking with the Hindu Business Line, Rentomojo CEO Geetansh Bamania said that the company has significantly reduced its losses in the past 1.5 years and turned PAT positive.
“Because we do not have any significant losses right now, the only need left is to purchase assets. This is why we chose to raise a larger debt round instead of equity,” he added.
“When Covid hit, a lot of lending companies saw their portfolio going into NPAs. Whereas for Rentomojo, operating on a subscription-model revenue meant that we did not have to acquire customers every month,” he told the daily.