Rentomojo Raises Rs 376 Cr from Anchor Investors Ahead of IPO

Bengaluru-based furniture and appliance rental platform Rentomojo has raised Rs 376.07 crore from anchor investors ahead of its initial public offering (IPO).

The company allotted 93.08 lakh equity shares to anchor investors at Rs 404 per share, the upper end of its IPO price band. At this price, Rentomojo is set to command an estimated valuation of around Rs 4,200 crore.

The IPO opened for subscription on September 9 and is scheduled to close on September 11, 2026.

Strong institutional participation

The anchor allocation attracted a broad group of institutional investors, including domestic mutual funds, insurance companies and pension funds.

Major participants included Kotak ELSS Tax Saver Fund, ICICI Prudential Quality Fund, Goldman Sachs India Equity Portfolio, BlackRock Global Funds - India Fund, HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset Great Consumer Fund, Bandhan Innovation Fund, HSBC Mutual Fund, Invesco India, Motilal Oswal Mutual Fund and JM Financial Mutual Fund.

Domestic mutual funds accounted for the largest portion of the anchor allocation, receiving 60.41 lakh shares, or 64.90% of the total allocation.

These shares were distributed across 30 schemes operated by 16 mutual funds, representing an investment of approximately Rs 244.07 crore.

Life insurance companies and pension funds received another 12.62 lakh shares, representing 13.56% of the anchor allocation and approximately Rs 51 crore.

Rentomojo's Rs 1,255.6 Cr IPO

According to the company's Red Herring Prospectus, Rentomojo plans to raise Rs 1,255.6 crore through the IPO.

The issue includes a fresh issue of Rs 150 crore, while the remaining Rs 1,105.6 crore will come through an offer for sale (OFS) of 2.73 crore shares.

The OFS will provide an exit opportunity for several existing investors, including Accel India, Edelweiss, Chiratae Ventures, ValueQuest, Madison India and GMO, as well as founder Geetansh Bamania.

Motilal Oswal, Axis Capital and IIFL Capital Services are serving as the book-running lead managers for the IPO.

Revenue and profitability accelerate

Rentomojo enters the public markets with improving financial performance.

Revenue from operations increased 45.5% year-on-year to Rs 387 crore in FY26, compared with the previous year.

Profit after tax rose even faster, increasing 142% to Rs 104.2 crore in FY26 from Rs 43.1 crore in FY25.

The company's profitability growth is particularly notable as it prepares to transition from a venture-backed private company to a publicly listed business.

Early investors eye significant returns

The IPO also represents a major liquidity event for Rentomojo's early backers.

Several existing investors are expected to generate substantial returns through the OFS, with some early investors reportedly positioned to achieve returns of up to 152X on their original investments.

With an estimated Rs 4,200 crore valuation at the IPO's upper price band and strong institutional participation in the anchor round, Rentomojo is entering the public markets at a significant milestone in its growth journey.

The IPO will now put investor appetite for India's organised rental economy to the test as the company looks to build on its growing revenue and profitability.