India: RentoMojo raises $10m in Series B round from Bain Capital, others

A vehicle drives past residential buildings in India's financial capital Mumbai January 27, 2010. REUTERS/Punit Paranjpe

Furniture and consumer durables rental start-up RentoMojo has raised $10 million in series B funding from private equity investor Bain Capital Ventures and fintech entrepreneur Renaud Laplanche, the company said on Tuesday.

Existing investors Accel Partners and IDG Ventures contributed 20-30% of the fund and have increased their share in the firm, RentoMojo chief executive Geetansh Bamania said. Accel Partners and IDG Ventures had earlier invested $7 million over two rounds.

“Bain coming in at this stage and Renaud’s faith in us is a big confidence booster. I think people will now move from seeing us an e-commerce company to a fin-tech consumer leasing firm,” Bamania said in a telephone interview.

RentoMojo has brought on board Laplanche, who founded peer-to-peer lending start-up Lending Club and led the US firm to its initial public offering in 2014. He joins the board at RentoMojo along with Bain Capital managing director Salil Deshpande.

RentoMojo, founded in 2014, offers home durables from sofas to appliances like washing machines and even two-wheelers on rent. The service is pitched as an alternative to buying home durables.

“RentoMojo is going after a potentially very large market and has demonstrated impeccable execution so far. We are very happy to be part of the company’s journey and continue to remain excited about its future potential” said Venkatesh Peddi, executive director at IDG Ventures.

Since its launch, Bengaluru-headquartered RentoMojo has grown to eight cities, including Delhi, Pune and Mumbai, with about Rs45-50 crore worth of products already handed out on rent. Bamania said the company leases about 16,000-20,000 items every month and has over 25,000 active customers currently.

The fresh capital will provide much-needed scale to its leasing programme, Bamania said. RentoMojo will use 20-30% of the fund towards marketing and branding. The rest will be invested across lateral hiring and increasing its products catalogue.

“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,” Bain Capital’s Deshpande said in a statement.

RentoMojo has an asset light model where it raises external capital from banks and financial institutions to buy products, which are then leased out to customers for a minimum of three months to up to two years.

Bamania said RentoMojo will start a three-year lease programme, launch new categories and look to go deeper in existing geographies going forward.

Also Read:

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India Dealbook: LT Foods, Den Networks, HUL in M&A; Rentomojo, Wow! Momo raise funds

India Dealbook: RentoMojo secures $2m from IDG, Accel; Go Colours to raise $25m for expansion

This article was first published on Livemint.com

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.