RentoMojo, an online portal which provides home appliances and furniture on rent, has raised Rs. 13 crore in a Series A round of funding from IDG Ventures India and Accel Partners.
Founded by Geetansh Bamania and Ajay Nain, Prashant Chanchal and KJ Venky in November 2014, RentoMojo lets users rent furniture and home furnishings for a minimum period of three months via its online platfoprm.
Recently, along with the furniture renting, the company also forayed into the transportation segment by launching motorcycle renting service. The company had also raised seed funding from London-based angel investor.
Currently operating in Mumbai, Bengaluru, Delhi and Pune, it has a team of 50 people. It also claims to have around 2,000 active subscribers on the platform and is targeting to reach 6,000 subscribers by March next.
The company has an interesting business model. RentoMojo does not own any of the items that it puts out on rent. Instead, the company is tying up with a few suppliers who want to earn rental income.
Along with offering individual items such as beds, microwaves, television, tables and water purifiers on rent, the company is also providing combined packages on items.
The targeted customers of the company includes Bachelors, working professionals and freelancers who travel for long-term assignments. Instead of renting a fully furnished apartment, which costs high, they can choose a normal apartment and rent furniture and home decor from the company which costs on an average Rs. 1,500 per month.
The furniture renting space is worth a 500 million market, considering only unfurnished apartments and houses in India, as per some industrial report.
In this space, RentoMojo will compete against Furlenco, which also provides furniture on rent. However, the company is more focused towards B2B model and unlike RentoMojo, it owns the furniture and provides it on rent.
Venkatesh Peddi of IDG Ventures, said,
We see, as India as an economy grows, people who are in the access in the economy will only grow. If we draw parallel from developed economies, areas like furniture rental and accessories should be close to 10% of the overall offline market.