In Short:
Rentomojo, a rental company for furniture and appliances, saw a 60% revenue increase to ₹193 crore in FY24 and a 256% rise in profit to ₹22 crore. After flat growth in previous years, their success in FY24 resulted from improved efficiency and cost management. Operating in 19 cities, they’ve served over 400,000 customers with flexible rental solutions and have strong backing from notable investors.
Rentomojo Reports Impressive Growth in FY24
Rentomojo, a standout player in the furniture and appliance rental arena, is celebrating remarkable achievements in its financial performance. The company witnessed a whopping 60% year-on-year (YoY) revenue growth, reaching an impressive ₹193 crore in FY24, up from ₹121 crore in the previous year (FY23). Even more exciting is their profit after tax (PAT), which skyrocketed by 256%, soaring from ₹6 crore to an impressive ₹22 crore.
Transforming Challenges into Opportunities
After experiencing flat growth in both FY22 and FY23, Rentomojo made a strong comeback in FY24, tripling its profits. This turnaround can be attributed to enhanced operational efficiency and a keen focus on automation, as shared by Geetansh Bamania, the company’s Founder and CEO.
Key Factors Driving Sustainable Growth
In his insights, Geetansh emphasized the importance of disciplined cost management, the extension of average subscription periods, and impressive repeat rates. These elements have become the backbone of Rentomojo’s sustainable growth and increased profitability.
A Glimpse at the Financial Metrics
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a remarkable increase of 142% YoY, climbing to ₹66 crore. Additionally, their gross revenue mirrored this upward trend, also rising by 60% to reach ₹228 crore. Rentomojo’s growth reflects strong customer demand, with a notable 45% YoY increase in the average number of items deployed.
The Journey and Vision of Rentomojo
Founded in 2015, and headquartered in Bengaluru, Rentomojo has carved a niche for itself in over 19 major cities across India. With a customer base exceeding 400,000, the company prides itself on providing hassle-free, commitment-free living options. Their innovative online-first approach, combined with a network of offline experience centres and warehouses, allows them to offer flexible and cost-effective rental solutions for consumer appliances and furniture.
Backed by Esteemed Investors
Rentomojo enjoys the confidence and backing of renowned investors, including Accel, Chiratae Growth Fund, Edelweiss Discovery Fund, and ValueQuest S.C.A.L.E. Fund. They are also supported by strategic partnerships with major lenders, including top banks and NBFCs, reinforcing their position in the market.
