Imagine you have been recently shifted to a new city for a couple of months on company deputation. While the company might arrange a flat for you but you may face difficulty in arranging furniture and home appliances. This problem has been effectively tackled by Rentomojo, which provides online rental solution for all the furnishing needs including furniture, furnishings, home appliances, and bikes.
The online marketplace is catering to the market that sizes $7bn approximately. It currently hosts 1 lakh subscribers on its portal who are using their rental services. It caters to the younger generation of today aged between 24-35 years which moves from city to city with the mobile nature of their jobs.
When asked about how he got the idea of renting furniture, Geetansh Bamania, CEO and co-founder, Rentomojo said in an interview , “Nowadays, we have plenty of options to rent houses at the click of a button but none for renting furniture. Buying furniture requires unjustified spending and it comes with an extra baggage of ‘what to do’ with the furniture when you relocate. As a result, we either end up living below par lifestyles in under-furnished houses or spend way beyond what is necessary.”
|Announce Date||Transaction Name||Money Raised||Lead Investors|
|Nov 23, 2015||Seed Round||$2M||–|
|July 16, 2016||Series A||$5M||–|
|Nov 22, 2016||Non Equity Assistance||$50K||Google Launchpad Accelarator|
|May 31, 2017||Debt Financing||–||IntelleGrow|
|Jul 19, 2017||Series B||$10M||Bain Capital Ventures|
During early 2018, Rentomojo has launched an additional rent-to-own model. This model added new proposition to the startup where customers can not just rent but also own the products after they have rented for some tenure.
The idea, according to Geetansh, is to give the consumer of today, who has an ever-evolving lifestyle, better choices and options. “We are creating a financial solution where customers don’t have to give a huge upfront cost. They also have the flexibility of rent, return, or own the product based their changing lifestyle”, said Geetansh.
On 13 August, the company announced its plans to offer smartphones on rent through its platform, and add other smart devices over the next few months. This new service, it expects, will help bring in more customers to its platform and increase transaction volumes as well.
“Consumers can now subscribe to or obtain smartphones on lease, through our RMI (Rental Monthly Installments) system, as opposed to purchasing and owning. By March 2021, smartphones will contribute 40% of the company’s revenues”, said the CEO.