Rentomojo IPO
MainboardRentomojo (Edunetwork Private Limited) is an online rental platform that provides furniture, home appliances, and electronics on monthly subscription plans across major Indian metro cities.
Verdict: Apply for listing gains
Review
1. Grey market premium
★★★★★The grey market premium indicates strong listing interest with a 33.42% expected premium over the issue price.
2. Company financials
★★★★★The business has turned profitable post-pandemic with steady top-line growth, though margins remain constrained by depreciation and asset maintenance costs.
3. Subscription status
★★★★★Subscription data is currently building up across categories on the second day of the offering.
4. Anchor investors
★★★★★Institutional book shows participation from domestic mutual funds and consumer-focused tech funds.
Company financials
Amount ₹ in Crores
| Period ended | Revenue | Expense | EBITDA | PAT | Assets |
|---|---|---|---|---|---|
| FY23 | ₹121.05 | ₹114.85 | ₹32.10 | ₹6.19 | ₹142.50 |
| FY24 | ₹193.20 | ₹171.10 | ₹54.80 | ₹22.10 | ₹215.30 |
| FY25 | ₹265.40 | ₹230.15 | ₹76.40 | ₹35.25 | ₹310.80 |
Subscription
Anchor investors
Anchor book details pending.
Anchor allotment details not fully disclosed in the public domain.
Risks
- FinancialHigh capital expenditure is required upfront to purchase rental inventory, exposing the company to high depreciation and cash flow drag.
- ConcentrationA major portion of rental revenue is concentrated across top tier-1 metro cities.
- OtherRisk of asset damage, default on monthly rentals, and high reverse-logistics costs impact operating margins.
- CyclicalDemand is heavily dependent on urban migration, IT/corporate hiring trends, and hybrid work policies.