Bengaluru based online Rental Solution Company for home appliances and furniture RentoMojo has raised funds of $ 5 million in Series A funding from IDG Ventures and Accel Partners.
RentoMojo was founded in November 2014 by IIT Alumnus, Geetansh Bamania and Ajay Nain. Since its inception, it has expanded the operations to four cities including Delhi, Mumbai, Pune and Bangalore. The funds raised will be used to further strengthen the product and the data driven structure within the company.
Bamania stated, “We want our users to indulge in the benefits of curated, personalised lifestyle without actually owning it. Apart from the cities we are operating in currently, we plan to expand to two more cities in the coming quarter. We are growing at a pace of 30 per cent month-over-month and we hope to continue on this growth trajectory.”
Within the uncertainty of fixed location to stay forever, especially for youngsters, it’s not only expensive but also difficult to buy the high-cost furniture and sell it at later stage. Rentomojo is trying to fulfill this gap by creating awareness about ‘renting’ and ‘access lifestyle’ as a concept. Aiming to capture the frequent inter-city migrant volume, it is offering online rental services for products ranging from furniture, appliances, trekking equipment to bikes.
“Business models fulfilling the gap of existing business models have high probability of success”, RentoMojo is the perfect example of developing the business model in the gap created by real state portals like Magic Bricks, 99 Acres etc. by providing the affordable service solution for unfurnished houses.
Prior to this, RentoMojo raised $2 million funding in Pre-Series A funding from Accel Partners and IDG Ventures, India. Other startups of same segment are CityFurnish, GrabOnRent, FlatFurnish etc. Operations excellence, optimum cost and service reliability are some of the major drives that will lead towards success in the segment.