Rental startup RentoMojo has raised $10 million in series B funding from private equity investor Bain Capital Ventures and fintech entrepreneur Renaud Laplanche. Existing investors Accel Partners and IDG Ventures also participated in the funding round.
The Mumbai-based startup was Co-founded in 2014 by IIT alumnus Geetansh Bamania and Ajay Nain. Rentomojo offers online rental service helping you set up your home at easy and affordable rentals. The startup service is mainly pitched as an alternative to buying home durables.
Explaining about the startup, Geetansh Bamania, CEO and Co-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.”
Since its inception, RentoMojo has expanded to eight cities, which also include Delhi, Pune, Chennai, Hyderabad and Mumbai. The startup has already rented about Rs45-50 crore worth of products. Bamania said the company leases about 16,000-20,000 items every month and has over 25,000 active customers currently.
Commenting on the investment, Salil Deshpande, managing director at Bain Capital Ventures, 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.”
The fresh funds will be used to strengthen the product, finish building a stellar leadership team, and expand into new categories and geographies. Previously, RentoMojo raised $5 Million of Series A funding from IDG Ventures and Accel Partners. Read more about the Indian Startup Ecosystem.
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