Rentickle, an online platform for lifestyle products renting, has announced that it has raised around ₹26 crore ($4 million) in a new funding round led by Ajay Relan, chairman of VC firm CX Partners, and ThinKuvate, a Singapore-based venture capital firm.
The funding round was raised in a combination of equity and debt. The capital raised in the current round will be utilised for geographical and product category expansion, and for pushing internal growth.
According to the reports, the equity and debt funding ratio is around 45:55. Relan and ThinKuvate, along with the existing investors have participated only through equity. Debt line has been extended solely by DMI Finance, a Delhi-based NBFC.
The startup will use the funds to expand its services to more cities, along with enriching its product category. Amit Sodhi, co-founder of the company, said:
Raising this investment is significant for us, as we see more strategic opportunities in the online renting space in the near future.
Ajay Relan, who invested in the current round, said,
The online rental space has tremendous growth potential, given the change in demographics and increasing acceptance of the shared economy concept especially amongst generation next. However, timely recoveries are extremely crucial for the success of startups following this model.
Rentickle was founded by Amit Sodhi and Vineet Chawla in 2015. Sodhi’s previously founded homeobuy.com, a homeopathy medicines platform, which was acquired by online drug marketplace 1mg.com in 2015.
The platform offers furniture including beds, bookshelves and sofa sets as well as home appliance products like refrigerator, TV and washing machine. It claims to have around 10,000 subscribers across the four cities it operates in — Delhi, Noida, Gurgaon and Hyderabad.
Earlier, the furniture rental platform had raised around $250,000 in Seed funding from a clutch of angel investors in May 2016. It competes against the likes of RentoMojo, CityFurnish, GrabOnRent, FlatFurnish and Furlenco, among others.