RentoMojo, which provides home appliances and furniture on a lease/rental basis, has raised $10 million in a Series B round of funding from new investors Bain Capital Ventures and Renaud Laplanche. Existing investors Accel Partners and IDG Ventures also participated in this round. The fresh funds will be used to strengthen the product, add new members to the leadership team, and expand into new categories and geographies. Previously, the company had raised $2 million from IDG Ventures and Accel Partners, in November 2015.
Founded in November 2014 by Geetansh Bamania and Ajay Nain, Rentomojo offers rental services across categories, including home appliances, furniture, packages, kitchen and home utility, as well as two-wheelers. The company also provides combined packages on home items, e.g. bedroom, kitchen, study room packages.
RentoMojo has operations in Pune, Mumbai, Bangalore, Delhi, Chennai and Hyderabad, and claims to have more than 25,000 subscribers on the platform. Rentmojo does not follow an inventory model, it instead ties up with suppliers to source its stock. The price range for furniture packages starts from Rs 2075 for an average sized apartment. It includes 11 products like a bed, mattress, couch, wardrobe, tables, cushions, among others. Other appliances like washing machine, LED TV, microwave, fridge, etc. are also available under individual and packaged categories.
Products can be rented for a minimum of 3 months and maximum of 2 years and can be bought via two models:
- Ownership model: It lets users pay for the retail value of the product in EMIs and eventually own the product. Relocation costs money.
- Subscription model: This option allows the user to rent out the product at a lower monthly fee, but no ownership is provided under this plan. Relocation is free of cost.
RentoMojo has very few competitors in India in the online rental/lease space. Lightbox Ventures backed Furlenco had raised $30 million last year through a mixture of equity and various forms of debt financing routes. While securing funds in October last year, Furlenco had said that it will follow a fully debt-financed model to fund its assets. Unlike RentoMojo, Furlenco does not provide the option of an ownership model, it instead operates on a subscription model. Bangalore-based Grabonrent also competes in this space, and had raised funding from IvyCamp Ventures last year.