Rentomojo returns to profitability with Rs 6.2 crore in FY23; Know the revenue

Furniture rental company RentoMojo has reported a significant financial turnaround in the fiscal year ending March 2023. The Bengaluru-based startup has recorded a profit of Rs 6.2 crore, a notable recovery from a loss of Rs 13 crore in the previous year.

The improvement is attributed to a 22% increase in revenue from operations, which rose to Rs 121 crore in FY23 from Rs 98.6 crore in the prior year.

Controlled expenditure growth

Despite the revenue increase, RentoMojo managed to keep its total expenditure growth marginal. The company's total expenses only slightly increased to Rs 117 crore in FY23 from Rs 112.5 crore in FY22. Most of these expenses were attributed to employee benefits, costing Rs 22.58 crore, and finance costs, amounting to Rs 11.20 crore.

Demand surge 

Founded in 2014 by Geetansh Bamania, The startup claims to have witnessed a 5X surge in demand in FY23, primarily driven by its core categories of furniture and appliances. 

RentoMojo has raised Rs 70 crore in multiple funding rounds over the past five months and secured an additional debt line of over Rs 40 crore for this fiscal year.

Since its inception, It has raised over Rs 620 crore through debt and equity funding from investors, including Accel, Shri Investments, Renaud Laplanche, Bain Capital, and Chiratae Ventures.

Rentomojo's data breach

Earlier this year, Rentomojo faced a massive data breach that could have affected its 1.5 lakh subscribers. However, the startup affirmed that the breach did not impact any financial information like credit cards, debit cards, or UPI, as it never stored them in the firm's database.

The current landscape of furniture rental space

As of 2020, the Indian furniture market had an estimated size of $41 billion, with the rental sector accounting for about $2 billion, or 4.9% of the total market.

The pandemic has shifted consumer preferences, with an increased inclination towards renting furniture. This is particularly evident among those who work from home, need temporary furnishings, or prefer frequently changing their home décor. The concept of a "shared economy" is gaining traction, leading to more people opting for rental solutions.

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