RentoMojo, a Bangalore-based furniture and durables rental startup, has raised ₹65 crores ($10 million) in Series B round of funding. The round was led by Bain Capital Ventures, while Renaud Laplanche also participated.
Apart from these new investors, existing investors of the company – Accel Partners and IDG Ventures have also invested in the current funding round.
The amount raised will be used by the startup to continue its expansion. It also plans to scale its leasing program. Around 20% to 30% of the fund will be used towards marketing and branding, while rest of the amount will be invested across lateral hiring and increasing product catalogue.
The company is also looking forward to starting a three-year lease programme, launch new categories and go deeper in existing geographies.
With this funding round, Renaud Laplanche has joined the board at RentoMojo. Along with him, Bain Capital’s managing director Salil Deshpande has also joined the board.
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.
RentoMojo was founded in 2014, and offers home durables from sofas to appliances like washing machines. Since its last funding (Series A round), the company has expanded its focus towards two-wheelers.
It is catering to India’s migrating workforce. Instead of buying expensive furniture or durables, users can just rent those products on monthly-basis. The startup is currently operating in eight cities, including Bangalore, Delhi and Mumbai.
The startup claims to have already rented products worth about ₹45-50 crores. According to the company, it leases about 16,000-20,000 items every month and has over 25,000 active customers.