RentoMojo secured ₹376 crore from 41 anchor investors, pricing shares at the upper end of its IPO band. This signals strong institutional confidence in the rental economy, even as many startups struggle with profitability scrutiny. The allocation included major domestic mutual funds and life insurance companies, betting on long-term asset-light models.
How We Got Here
RentoMojo filed its DRHP five months ago and received SEBI approval for its public issue in July. The company aims to raise up to ₹150 Cr via a fresh issue and up to 2.7 Cr shares through an offer for sale.
The Numbers
- 16 domestic mutual funds bought 60.4 lakh shares worth ₹244.1 crore across 30 schemes.
- Five life insurance companies invested ₹51 lakh for 12.6 lakh shares in the anchor round.
- Prominent investors included Kotak Mahindra Trustee, Edelweiss, HDFC, Invesco, and ICICI Prudential.
- At the upper price band of ₹404 per share, RentoMojo's IPO values the company at ₹4,206 crore ($445.1 million).
- For FY26, the company reported a PAT of ₹104.2 crore (142% YoY jump, aided by a ₹36.6 Cr tax credit) and operating revenue of ₹387 crore (45.5% YoY).
What Happens Next
🇮🇳 Why This Matters for India
For founders building subscription-first models for physical assets in Tier-2 cities like Lucknow or Jaipur, RentoMojo's public listing could validate a significant and underserved market.
The Take
The real story here is institutional investors betting on India's rental economy, despite RentoMojo's 142% PAT jump in FY26 being sweetened by a ₹36.6 Cr tax credit. This IPO will be a litmus test for how much public markets value recurring revenue and scale over pure, unadjusted profitability.
Source:
Inc42 ↗