Furniture and appliance rental platform Rentomojo has received observations from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), moving a step closer to its public market debut. According to the company's draft red herring prospectus (DRHP), the IPOcomprisesa fresh issue of shares worth Rs 150 crore and an offer for sale (OFS) of up to 28.4 million equity shares by existing shareholders. Geetansh Bamania is the promoter of the company. The proceeds from the fresh issue will be used to repay or prepay certain borrowings, pay lease rentals and licence fees for warehouses and experience stores, and for general corporate purposes. The SEBI observations come months after Rentomojo's IPO plans faced a legal hurdle. In March this year, former co-founder Ajay Nain had approached the National Company Law Tribunal (NCLT), seeking tohalt the proposed IPO. According to the company's DRHP, Nain filed a petition before the Bengaluru bench against the company, its promoter, directors, chief financial officer, RM Employee Benefit Trust and others. Founded in 2014, Rentomojo operates a technology driven direct to consumer rental and subscription platform for furniture and home appliances. As of September 30, 2025, it served 227,511 live subscribers across 22 cities through 67 experience stores, 21 warehouses, and a portfolio of 728,773 live products. Citing a Redseer report, the company said it held an estimated 42% to 47% share of the organised home furniture and appliances rental market, excluding water purifiers, based on subscription revenue in fiscal 2025. For the six months ended September 30, 2025, Rentomojo reported revenue from operations of Rs 176.61 crore and a profit after tax of Rs 61.38 crore. In fiscal 2025, the company posted revenue of Rs 265.96 crore and a profit after tax of Rs 43.11 crore. Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services are the book running lead managers to the issue. The company's equity shares are proposed to be listed on the BSE and NSE. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.
