Bengaluru-based furniture and consumer durables rental start-up, RentoMojo has raised $10 million in Series B funding from Bain Capital Ventures, fintech entrepreneur Renaud Laplanche and others to further strengthen the product and expand into new categories. Besides, the company also plans to use some part of raised capital in geographical expansion and hiring.
Existing investors Accel Partners and IDG Ventures has also participated and contributed about 20-30% of fund to increase their share in the company.
Salil Deshpande, Managing Director at Bain Capital Ventures who has joined RentoMojo’s board said, “In India’s credit-constrained economy, RentoMojo has built a defensible beachhead in multiple categories in an underserved sector in the subscription economy, with a capital-efficient two-sided marketplace, no balance-sheet risk and network effects at scale.”
Founded by IIT alumnus Geetansh Bamania, Gautam Adukia, Achal Mittal, and Ajay Nain in 2014, RentoMojo provides credit infrastructure that evolves and adapts to people’s changing lifestyles. The startup currently offers leases for furniture, appliances, and bikes, and soon plans to add new categories.
Since its inception, RentoMojo has expanded to Pune, Mumbai, Bangalore, Delhi, Chennai and Hyderabad, with more than 25,000 subscribers on the platform.
Commenting on the development, Geetansh Bamania, CEO and Founder, RentoMojo said, “India is credit-constrained. We have consumer lending, but not consumer leasing. We believe that the leasing value-proposition is stronger than lending, especially for today’s youth which opts to pay as they use, rather than buying. Innovation is at the core of everything we do. Salil’s and Renaud’s faith in us has further boosted our confidence that we are creating something very valuable. I urge folks looking to do something innovative in this sector to join us in creating a proposition that has never existed before.”
RentoMojo is a first-of-its-kind consumer product leasing company that raises lease-capital from financial institutions for products rented to consumers for long-term periods, typically 18 months. Prior to this financing, RentoMojo had raised a total of $7 million in Seed and Series A from Accel Partners and IDG Ventures.