Furniture and appliance leasing startup RentoMojo is in discussions to close a fresh funding round of up to USD 40 million, sources told Mint. Existing investors Accel, Chiratae Ventures and Bain Capital Ventures are expected to take part in the new round in which Japanese investor GMO Venture Partners will also invest, a source said.
RentoMojo plans to use the funds to accelerate its growth, expand to more cities and go deeper in its existing businesses.
RentoMojo previously raised USD 10 million in July 2017 from Bain Capital, Accel and Chiratae Ventures. It offers furniture, electronics and bikes on lease in Mumbai, Delhi, Pune, Bengaluru, Chennai, Hyderabad, Noida, and Gurugram. It also offers free relocation, maintenance and product swap facilities on the leased items.
GMO Venture Partners has backed more than 25 startups in Japan and over 40 globally, including three in India. It also runs the GMO Global Payment Fund, which backs online payment gateways Mobikwik and Razorpay in India. GMO has also invested in truck logistics platform LetsTransport.
CEO Geetansh Bamania told Mint in an earlier interview that while appliances comprise around 40% of Rentomojo’s total sales, smartphones as a category is expected to grow significantly to account for 40% of sales by March 2021. For fiscal year 2017, the company posted a loss of Rs 22.4 crore on a total income of Rs 15 crore.
RentoMojo competes with furniture rental firm Furlenco, which is backed by Lightbox Ventures, Crescent Enterprises and Trifecta Capital.