India: RentoMojo raises $11m in Series C funding led by Accel, Chiratae

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Furniture and appliance leasing startup RentoMojo is raising about 11 million (Rs 77.72 crore) in a Series C funding round led by existing investors Accel India, and Chiratae Venture.

According to the company’s filings with the Registrar of Companies (RoC) sourced by paper.vc, the Bengaluru-based startup will also see capital infusion from Bain Capital Ventures and Japanese investor GMO Venture Partners.

Accel is subscribing to 3,000 Series C cumulative convertible preference shares (CCPS) of RentoMojo, each at a premium of Rs 92707.42 equating to Rs 27.84 crore while Chiratae via IDG Ventures India Fund II, III will be allotted 2,424 Series C CCPS for an investment of about Rs 22.5 crore. Its trust will acquire 576 shares by investing Rs 5.34 crore.

Meanwhile, Bain Capital is subscribing to a total of 1,500 CCPS for an investment of Rs 13.9 crore, and GMO is pumping in about Rs 6.9 crore by subscribing to the company’s 740 shares. Fintech entrepreneur Renauld Laplanche is also taking part in the funding in his personal capacity.

RentoMojo, owned and operated by Edunetwork Pvt. Ltd, offers furniture, electronics and bikes on lease in Mumbai, Delhi, Pune, Bengaluru, Chennai, Hyderabad, Noida, and Gurugram. It provides consumers with a viable alternative to traditional EMIs by offering rental options across various product categories.

According to Crunchbase, the startup has raised about $28.1 million in funding till date.

The latest financing comes almost two years after the startup raised $10 million in series B funding from Bain Capital Ventures and Laplanche in July 2017. The same year in May, RentoMojo raised an undisclosed amount in debt financing from IntelleGrow.

While appliances currently comprise around 40 per cent of Rentomojo’s total sales, smartphones as a category is expected to grow significantly to account for 40 per cent of sales by March 2021, Mint recently reported.

RentoMojo competes with startups such as Furlenco, a furniture rental firm. Furlenco, which counts Lightbox Ventures, Crescent Enterprises and Trifecta Capital among its investors, too, is planning to raise up to $50 million, according to media reports.