RentoMojo enters $100-mn valuation club with fresh VC funding

By Narinder Kapur

  • 15 May 2020
Credit: VCCircle

Online rental marketplace Rentomojo has touched a valuation of nearly $100 million after raising fresh funding from venture capital investors.

The Bengaluru-based firm, operated by Edunetwork Pvt. Ltd, has raised nearly Rs 24.5 crore ($3.23 million at current exchange rates) from its existing backers, including Chiratae Ventures, Accel, Bain Capital and French entrepreneur Renaud Laplanche.

Accel now holds a little over 26% in the startup, with Chiratae a notch above 25%. Bain Capital, meanwhile, has a nearly 9% holding in the online rental marketplace, as per the available data.

Per VCCircle estimates, Rentomojo’s post-money valuation now lies in the range of Rs 735-Rs 740 crore (around $97.13-$ 97.79 million). The figure represents a 10% jump from the firm’s last round of funding.

In that round, the rental platform raised $4.03 million from the venture arm of electronics giant Samsung and Mitsui Sumitomo Insurance Capital Co. Ltd.

The development of the fresh issue to Accel, Chiratae, Bain and Laplanche was first reported by Inc42.

Rentomojo was set up in November 2014 by IIT Madras graduates Geetansh Bamania and Ajay Nain. The startup allows users to rent furniture, home furnishings and appliances, and bikes for at least three months.

In May last year, VCCircle reported that the startup had raised funding from one of India’s most active angel investors. Previously, it had mopped up $10 million in a Series B round in 2017. It had secured $2 million in a pre-Series A round from Accel and IDG Ventures—now known as Chiratae—in 2016.

According to VCCEdge data, Rentomojo reported net sales of Rs 107.79 crore and Rs 35.54 crore for the 2019 and 2018 financial years. It reported EBITDA (earnings before interest, taxes, depreciation and amortisation) losses of Rs 36.09 crore and Rs 30.24 crore for the same period.

It is also among several startups operating in the rental space that have raised funding in recent times. Last month, for example, the Kieraya Furnishing Solutions Pvt. Ltd-operated Furlenco closed a $10 million (around Rs 76.28 crore) round, with an equal mix of equity and debt financing.

In November last year, the Bengaluru- and San Francisco-based CasaOne raised $16 million (Rs 114.96 crore) in a Series B round that was led by Accel. In June, furniture and consumer appliances-focussed Cityfurnish raised $5 million (around Rs 34.67 crore) in a Series A funding round from investors including Gmail creator Paul Buchheit and YouTube co-founder Steve Chen.

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