Rentomojo—the winner of The Economic Times Startup Awards 2024 in the Comeback Kid category—reported a 60% rise in operating revenue to Rs 193 crore in FY24, according to its financial results filed with the Registrar of Companies.
Controlled rise in expenses during the year saw net profit surge more than threefold to Rs 22 crore last fiscal from Rs 6 crore in FY23. It posted an earnings before interest, taxes, depreciation and amortisation (Ebitda) of Rs 65 crore during the year.
Rentomojo’s founder and chief executive Geetansh Bamania told ET that during FY24, the company took steps to enhance the use of automation, resulting in major cost savings.
“We’ve scaled rapidly by leveraging automation in a very high operationally intensive business and disciplined cost management, enabling sustainable growth and increased profitability,” he said.
“The first thing that we dabbled on was there used to be a manual team that used to sit and verify these consumers. Slowly and gradually, that’s now completely automated and happens in a minute,” Bamania added.
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ET on September 26 reported that Rentomojo is gearing up to file for an initial public offering (IPO) in the next 18 months.Founded in 2015 by Bamania and Ajay Nain, the firm operates in 19 cities with around 30 offline stores. Nain moved out of the company in 2018.
The company is targeting a 40-50% growth in its profit in FY25, Bamania said.
“We are actually on a very good momentum this year. It should continue on the same lines as last year itself; our Ebitda and net profit should very much grow by about 40-50%,” he said.
On February 21, the Bengaluru-based company raised Rs 210 crore in a late-stage funding round led by Edelweiss Discovery.
As of March 31, the company said it had an occupancy rate of 84% – meaning 84 of every 100 items it has, have been rented out to its customers. Rentomojo had almost 400,000 items as of FY24-end compared to 291,000 a year ago.
In July 2023, Rentomojo’s biggest competitor Furlenco was acquired by Sheela Foam, which owns popular mattress brand Sleepwell.