Rentomojo, the Bengaluru-based furniture rental platform, showcased a remarkable turnaround in its financials for the fiscal year ending March 2023. The company swung back to profitability, registering a profit of Rs 6.2 crore, a significant upswing from the loss of Rs 13 crore in the preceding year
One of the key highlights for Rentomojo was the noteworthy 22% surge in its revenue from operations, escalating to Rs 121 crore in FY23 compared to Rs 98.6 crore in the previous fiscal. Remarkably, the company achieved its second consecutive year of positive bottom-line figures, underscoring its financial stability and growth trajectory.
Despite the robust revenue growth, Rentomojo managed to keep a tight rein on its total expenditure, which saw only a marginal increase from Rs 112.5 crore in FY22 to Rs 117 crore in FY23. The major contributors to the spending were employee benefits amounting to Rs 22.58 crore and finance costs at Rs 11.20 crore.
Founded in 2014, Rentomojo caters to furniture, appliances, and electronics rental needs. Geetansh Bamania, the Founder and CEO, revealed that the company experienced an exceptional 5X surge in demand during FY23. The growth primarily stemmed from the core categories of furniture and appliances, positioning Rentomojo as a sought-after platform in the rental industry.
Bamania highlighted the challenges faced in scaling the ecosystem with the soaring demand. He emphasized the company’s focus on accelerating the availability of debt and enhancing production bandwidth to efficiently meet the escalating demand for rental products.
Despite the challenges, Rentomojo secured Rs 70 crore in multiple funding rounds within the past five months and secured an additional debt line of over Rs 40 crore for the current fiscal year. The company has raised over Rs 620 crore in funding since its inception.
However, Rentomojo faced a setback in April due to a data breach that compromised its customer database. The company promptly informed its users via email, acknowledging the violation and assuring them that steps were being taken to address the issue and enhance security measures to prevent future breaches. The fiscal year 2023 signifies a pivotal period for Rentomojo, marking a successful financial turnaround.
