Presented By: Snigdha Bhawsinghka

Chelsealia S. Nongrti
Prasad Patil
Sayan Biswas
,
 INTRODUCTION
 RentoMojo is an online furniture rental platform that was
incorporated in November 2014.
 RentoMojo was founded by Geetansh Bamania, an ex-
IITM, in November 2014 in India.
 RentoMojo was developed to provide an alternative to
buying and selling furniture in rental properties.
 HOW DID IT START?
 Rentomojo owner, Geetansh moved
from Flipkart to head Pepperfry and
eventually starting his own.
 He got an idea from his brother living
in the UK.
Geetansh Bamania
 His children wanting to buy toys
helped him.
 His experience in furniture and
appliances helped him.
 KEY ACTIVITIES

• It is an online rental platform that provides furniture,

appliances and electronics on a monthly rental basis. 
• It is unique because of the asset-light financial business
model .
• This platform also gives packages on combined items.
• Purchaser loaning model and Customer renting model.
• It raises lease-capital from financial institutions.
• It does not hold any inventory.
 CHALLENGES FACED BY
RENTOMOJO
• Every challenge an opportunity. Geetansh put all his savings to
buy the initial set of assets.
• Strived to provide a comfortable lifestyle to the younger
generation.
• It is still a foreign and new concept for Indian consumers.
• Spreading awareness to educate the Indian customers about renting.
• The business requires customers to keep coming back to the portal.
 REVENUE STREAMS
 The growth of the rental economy is evident from the financial performance of
Rentomojo in FY19.
 The company has managed to achieve a 3 folds growth in revenue from
operations.
 Channeling growth also came at a price as the total expenditure of RentoMojo
ballooned 2.3X to reach Rs 164.4 crore.
 RentoMojo’s losses for FY19 totaled to Rs 54.64 crore, increasing by only
53.3% from Rs 35.6 crore in FY18 which is a feat in itself.
 This issue was addressed earlier this year in June as the company raised a $15
million round.
 Almost three years after the fact, RentoMojo has recently raised
Series B financing of $10 million from Bain Capital Ventures and
Renaud Laplanche.
 Counting this round of financing, the organization has raised an
aggregate $17 million.
 Salil Deshpande, Managing Director at Bain Capital Ventures, and
Renaud Laplanche, fellow benefactor and CEO of Upgrade, the
organizer of Lending Club, will join RentoMojo’s Board of
Directors.
CUSTOMER SEGMENT
 Rental customers by choice are uptrend lifestyle customers who
truly want different furniture periodically
 Rental customers by force are customers who rent furniture because
they lack the cash to buy the product in full or have a limited time
in a city or are uncertain about their permanency in the city
KEY PARTNERS
 In July 2017, the company had secured Series B funding of $10 million led by Bain Capital. In
July 2016, the firm received $5 million in Series A funding from IDG Ventures and Accel
Partners, India.
 In March 2019, Bengaluru-based Furlenco had secured $5.84 million in a Series C funding
round from Lightbox Ventures, Crescent Enterprises, and others and is set to raise $50 million
in Series D funding in the coming fiscal.
 Furlenco has seen tremendous growth over the years, and was set to become the first furniture
rental company to hit Rs 100 crore in revenue.
 In January 2019, Pepperfry's existing investors Goldman Sachs PE, Norwest Venture Partners,
and Bertelsmann India Investments were planning to invest $100 million in the company to
expand its offline presence and diversify, according to media reports.
 In March 2018, Urban Ladder had received $12 million led by Kalaari Capital, Sequoia
Capital, Steadview Capital, and SAIF Partners.
 KEY RESOURCES
 Bangalore-based RentoMojo, which runs an online rental
marketplace for furniture, home appliances and bikes, is
using machine learning to analyse the credit profiles of its
customers.

 To determine the credit profile of a user, RentMojo rates a

customer based on his or her CIBIL score and the
individual’s history on the platform, among other parameters.

 According to the co-founder, activating new technologies  The company had earlier raised $2 million in a
on the RentoMojo platform has enhanced the startup's pre-Series A round from Accel Partners and
business, which has grown four-fold since it last raised IDG Ventures India in November 2016.
capital in July 2017.
CUSTOMER RELATIONSHIP
 The video primarily targets a generation that is constantly
on-the-move.
 While ownership of such assets through outright purchase puts
the onus of transportation and installation on the buyer,
subscription of these from RentoMojo relieves the subscriber of
these worries, thereby making it an extremely practical and
effortless option.

 Titled ‘Try before you buy’, the film highlights the option of experiencing a product for a period, before
deciding to own it. Viewers here witness a young man assuring himself of the comforts of a bed by trying
various sleeping positions.

 RentoMojo offers its subscribers, industry-first concepts, like the ‘Rental Monthly Instalments’, or RMI – a
more economical option compared to outright purchase, to acquire assets such as furniture, appliances,
electronic devices and bikes. Customers also have the added flexibility to own, return or swap the products
subscribed, at will.
COST STRUCTURE
 The rental economy has gradually been gaining ground in India with millennials in the top 5
cities opting to rent expensive items such as furniture and home appliances over buying them.
The growth of the rental economy is evident from the financial performance of Rentomojo in
FY19.
 Additionally, the income statement also included “Miscellaneous Expenses” worth Rs 13.6
crore, forming a large chunk of the total expenditure and account for expenses such as
logistics, warehousing, IT, recruitment, et al.
 Channelling growth also came at a price as the total expenditure of RentoMojo ballooned 2.3X
to reach Rs 164.4 crore during FY19 as compared to the total expenditure of Rs 72.6 crore that
the company incurred in the previous fiscal.
 This issue was addressed earlier this year in June as the company raised a $15 million round
led by Accel & Chiratae and the overall net worth of the company improved
VALUE PROPOSITION
 The fundamental value proposition to the consumer is that renting (of furniture, durables etc.)
 Rentomojo, has built an interesting business model around renting of furniture, home
appliances and even bikes. The company makes it to the list thanks to robust user growth,
revenue traction and positive customer reviews from over 25,000 subscribers.
 The company recently raised US $10million from Bain Capital Partners and former Lending
Club CEO Renaud Laplanche.
 Laplanche’s induction showcased the focus on the company’s strategy to build a fin-tech
driven business model, rather than a consumer technology company.
CHANNELS
 We have already been using Razorpay as our payment gateway,they have been benefited by
Razorpay Subscriptions because it helps in profiling the customers in terms of risk and
security considering the defaults and late payments on orders.
 CONCLUSION
 So having a detailed article on Rentomojo Business Model, at last. I
think it is a good business Idea micro niche startup we can say
about it. I think now you deeply understood about Rentomojo
Business Model.