RentoMojo, a furniture and consumer durables rental start-up, has today announced that it has raised $10 million in its Series B round of funding. The round saw participation of private equity investor Bain Capital Ventures and fintech entrepreneur Renaud Laplanche.
Along with them, the company’s existing investors Accel Partners and IDG Ventures have also participated in this round. They have contributed around 20-30% of the fund and have increased their share in the firm.
Accel Partners and IDG Ventures had earlier invested $7 million over two funding rounds of the Mumbai-based startup. With this funding, the total amount raised by the company now stands at $17 million.
As a part of this funding round, Renaud Laplanche joins the board at RentoMojo along with Bain Capital managing director Salil Deshpande. Renaud founded peer-to-peer lending start-up Lending Club and led the US firm to its initial public offering in 2014.
Venkatesh Peddi, executive director at IDG Ventures, said,
RentoMojo is going after a potentially very large market and has demonstrated impeccable execution so far. We are very happy to be part of the company’s journey and continue to remain excited about its future potential.
Bain Capital’s Salil Deshpande said,
In India’s credit-constrained economy, RentoMojo has built a defensible beachhead in multiple categories in an underserved sector in the subscription economy, with a capital-efficient two-sided marketplace, no balance-sheet risk and network effects at scale.
The startup, which was founded in 2014, offers home durables from sofas to appliances like washing machines and even two-wheelers on rent. The service is pitched as an alternative to buying home durables.
Since launching its series from Bengaluru, RentoMojo has now expanded to eight cities, including Delhi, Pune and Mumbai, with about ₹45-50 crore worth of products already handed out on rent.
Geetansh Bamania, chief executive of the company says that it leases about 16,000-20,000 items every month and has over 25,000 active customers currently.
With the fresh capital coming in, the company will scale to its leasing programme. RentoMojo will use 20-30% of the fund towards marketing and branding while the rest will be invested across lateral hiring and increasing its products catalogue.
The company will also start a three-year lease programme, launch new categories and look to go deeper in existing geographies going forward.
RentoMojo operates on an asset light model where it raises external capital from banks and financial institutions to buy products, which are then leased out to customers for a minimum of three months to up to two years.