Furniture rental platform RentoMojo raises $3.2 mn in internal funding round

Bengaluru-based Edunetwork, which runs online rental marketplace RentoMojo, has raised $3.23 million in an ongoing Series C funding round from returning investors Accel India, Chiratae Ventures, Bain Capital, BCIP Venture Associates and French-American entrepreneur Renaud Laplanche.

The firm will use the fresh funds to expand its business and for general working capital needs, according to regulatory filings.

The startup issued a total of 2,407 preferentials shares from a set dubbed as Series C1, at a face value of $1.32, each at a premium of $1,341 per share to the investors, according to a filing updated on Wednesday. The deal was approved on May 7. 

Post the deal, Accel owns 26.08% stake in the company, while Chiratae holds 22.31% through multiple funds.

The development was first reported by Inc42 on Thursday.

The company last raised funds in August, in a $3.8 million Series C  round from Samsung’s venture capital arm, and the private equity and venture capital unit of Mitsui Sumitomo. In May 2019, it raised $10.2 million in the first tranche of the Series C round.

The firm has raised at least $50.65 million in total, according to VCCEdge data.

Founded in 2014 by IIT Madras graduates Geetansh Bamania and Ajay Nain, RentoMojo competes with companies such as Furlenco, RentOnGo and GrabOn Rent. It has operations in Bengaluru, Mumbai, Pune, Delhi, Noida, Gurugram, Hyderabad and Chennai.

The firm registered a 200% revenue growth at Rs 107 crore ($15.41 million) in the financial year ended March 2019. However, its losses ballooned 60% to Rs 56.64 crore ($8.2 million).

Recent deals in the sector include Furlenco’s $10 million fundraise through a mix of debt and equity funding from new and existing investors in April. 

In February, omnichannel furniture platform Pepperfry, which also provides rental services, raised $40 million in a growth round led by Mumbai-based Pidilite Industries, maker of adhesive brands such as Fevicol, Dr Fixit and FeviKwik.