Rentomojo FY25 profit surges 92% to Rs 43 cr; revenue at Rs 266 cr on strong rental demand

Rentomojo ended FY25 with more than 2.2 lakh active subscribers and 7.7 lakh rental items deployed.

Furniture and appliance rental platform Rentomojo posted a 92 percent rise in net profit to Rs 43.07 crore in FY25, supported by higher subscription volumes, refurbishment-led operating leverage and demand growth across its rental categories.

The Bengaluru-based consumer tech rental firm, which offers furniture, appliances and water purifiers on subscription, reported revenue from operations of Rs 265.96 crore in FY25 and EBITDA of Rs 118.41 crore, up from Rs 78.23 crore in FY24.

FY25 marks its third consecutive year of profitability.

Founder and CEO Geetansh Bamania told Moneycontrol the margin expansion is being driven by asset reuse and reduced reliance on external capital.

“Many assets we procured in 2017–2019 are now fully paid for and still generating revenue. That is driving the flywheel,” he said. “We’re now funding a large portion of procurement through internal cash rather than debt.”

How large is Rentomojo’s customer and asset base?

Rentomojo ended FY25 with more than 2.2 lakh active subscribers and 7.7 lakh rental items deployed. The company operates across 23 cities and has expanded its offline presence to 71 experience stores, a channel that Bamania said is improving conversion and ticket sizes as customers evaluate refurbished products physically.

“The hesitation around refurbished assets and contract structures reduces inside a store environment,” he said.

How strong are returns and unit economics?

The business also reported a 25.1 percent return on capital employed for FY25. Bamania attributed this to operating leverage from older cohorts and longer asset life cycles.

Rentomojo operates in a fragmented rental market with limited scaled competition. Its closest comparable player, Furlenco, also reported a turnaround in FY25 after posting losses in FY24, recording revenue growth of over 60 percent and a small profit after tax. Other players include Cityfurnish and Rentickle, alongside a large, unorganised rental ecosystem.

Why is the rental demand rising?

Bamania said rental penetration remains low relative to purchase, and demand is being shaped by mobility and affordability.

“This market has never been demand-constrained,” he said. “Once capital availability stabilised and older cohorts matured, growth picked up.”

Is Rentomojo planning to go public?

The company reportedly has appointed bankers for a potential IPO, and profitability momentum appears central to the decision.

“Sustained profitability is still uncommon among companies coming to market. The kind of return on capital and financial discipline we have built puts us in a stronger position. It will be interesting to see how public markets view a business like ours,” Bamania said.

He declined to comment on issue size or timelines, saying it was too early to disclose details.

Which categories are leading growth for Rentomojo?

Water purifiers, introduced recently, are showing early traction alongside the company’s core furniture and appliance segments.

With subscription revenue visibility, refurb-driven margins, and an expanding offline presence, the company said FY25 reinforces the rental model’s viability within India’s consumer tech landscape.