Online rental solutions company – RentoMojo, has announced its latest fund raise of $5 million in Series A from IDG Ventures and Accel Partners. The funds raised will be used to further strengthen the product and data driven structure within the company.
Since company’s launch in November 2014, RentoMojo has expanded to four cities including Delhi, Mumbai, Pune & Bangalore. It was founded by Geetansh Bamania with an aim to create awareness about ‘renting’ and ‘access lifestyle’ as a concept in the consumer consideration set.
RentoMojo does not own any of the items that it lists on its portal. Instead, it is tying up with a suppliers who want to earn rental income. Prior to this round, RentoMojo had raised $2 million in Pre-Series A from Accel Partners and IDG Ventures, India in November, 2015.
Commenting on the funding, Geetansh Bamania said,
The way access-economy is shaping up in our country, there is a need to generate awareness around this concept; we want our users to indulge in the benefits of curated, personalized lifestyle without actually owning it. Apart from the cities we are operating in currently, we plan to expand to two more cities in the coming quarter. We are growing at a breakneck pace of 30% MoM growth and we hope to continue on this growth trajectory.
Venkatesh Peddi, Executive Director, IDG Ventures India, said,
We strongly believe that product-renting business has a huge potential in India given the growth in inter-city migrant population. RentoMojo is capturing this market in an asset-light way, which we believe is the best approach to building a large scalable company. We continue to remain very impressed with the team’s focus on building operational excellence using technology and are happy to back them in this exciting growth phase.
Prashanth Prakash, Accel Partners, said,
By combining a wide selection of home-essentials along with a unique business model RentoMojo, is successfully transforming the lives of today’s millennials. The rental commerce market is growing in India and it is great to see this innovative startup at the forefront of this booming category. We are happy to have partnered with Rentomojo again and look forward to working with them as they continue to scale and offer value to a new generation of online consumers.
In this space, Cityfurnish has secured an undisclosed amount of funding in seed round from Brand Capital last week. Rentomojo also competes against the likes of Furlenco and Rentongo.