Retail

India’s Rentomojo Raises $10M For Expansion, Brand Awareness

Rentomojo, the Indian startup that enables consumers to rent appliances, furniture and other items, has raised $10 million in venture funding.

According to a report, the Series B round of funding was led by Bain Capital Ventures and counted Lending Club founder and former CEO Renaud Laplanche, Accel and IDG as investors. A year ago the startup was able to raise $5 million in venture funding. Since its first round last year it has moved from renting out appliances for the home and furniture into motorbikes, which the report said may end up being a lucrative segment for the company.  In an interview Rentomojo CEO and founder Geetansh Bamania said the entire market is worth $60 billion per year. As for motorbikes, the executive said the aim is to  “offer something that’s less than the cost of Uber or Ola.” He noted that consumers in urban areas in India spend close to $100 each month on ride-hailing apps, while its motorbike rentals cost between $30 and $40 a month.

Rentomojo plans to use the funding for expansion and to increase awareness about the company’s services. “Our eight cities cover a good 60-70 percent of online commerce [shoppers in India] right now, we are now looking to go into a lot more depth in the cities we exist in,” he said in the report. The startup also wants to hire people for a handful of senior positions but doesn’t plan to increase its workforce, which stands at around 300, by a big amount.

“We’re trying to stay lean, but with 120 in management we are very operational heavy,” Bamania said in the report. “We are looking for leadership, ideally those in senior leadership roles that we’d love to join with experiences in fintech, finance and consumer lending.”

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New PYMNTS Study: Subscription Commerce Conversion Index – July 2020 

Staying home 24/7 has consumers turning to subscription services for both entertainment and their day-to-day needs. While that’s a great opportunity for providers, it also presents a challenge — 27.4 million consumers are looking to cancel their subscriptions because of friction and cost concerns. In the latest Subscription Commerce Conversion Index, PYMNTS reveals the five key features that can help companies keep subscribers loyal despite today’s challenging economic times.

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