The net profit of furniture and appliance rental platform, Rentomojo, has registered a 92% growth in the net profit in the financial year ending in 2025. Profit of the company increased to Rs 43.07 crore in FY25 compared to Rs 22.49 crore in FY24 and 6.2 crore in FY23. It will be the third year of profitability for the Bengaluru-based firm.
The net rental revenue registered at Rs 265.96 crore in FY25 with a compound annual growth rate (CAGR) of 48.24% between FY23 and FY25. The EBITDA of the company was increased to Rs 118.41 crore compared with the previous financial year where it was increased to Rs 78.23 crore. During FY25, Rentomojo also had an improved efficiency in the way resources are used as its return on capital employed (ROCE) was 25.1%.
Rentomojo currently has over 2.2 lakh active subscribers across 23 cities in India. The business has over 7.7 lakh rental properties, which include furniture and home appliances. These data indicate the increasing interest of city residents in subscription-based housing.
Rentomojo has continued to expand its offline presence, with 71 experience stores across the country, enabling it to capitalize on the demand. Such stores will allow buyers to see products in person, and then subscribe to them to enhance customer engagement and acquisition.
Rentomojo has collected a cumulative capital of $58.4 million since its founding. Its major investors are Accel, Chiratae Growth Fund, Edelweiss Discovery Fund, and ValueQuest SCALE Fund. It is also reported that the company has engaged investment bankers to review an IPO, but no announcement has been made.
According to Geetansh Bamania, founder and CEO, automation, product refurbishment, and quality of service played a key role in keeping the company profitable. The firm continues to aim for expansion and maintains its asset-light model.
The growth of Rentomojo is timed to coincide with an upsurge in flexible consumption models, particularly in metro and Tier-1 cities. The company has a promising future in the rental business, with further expansion provided it receives the support of investors and maintains discipline in its operations.