Online rental and subscription platform Rentomojo Ltd has received Sebi's go-ahead for its proposed initial public offering (IPO), an update with the regulator showed on Monday.
The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 150 crore and an Offer for Sale (OFS) of 2.84 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).
The regulator received the company's draft papers on April 1 and gave its observations on July 6, the update showed.
In Sebi parlance, the issuance of observations implies its approval to float the IPO.
According to the draft papers, the company proposes to utilise the net proceeds from the fresh issue towards payment of loans, payment of lease rentals or licence fees for warehouses and experience stores, and general corporate purposes.
Rentomojo operates a technology-driven, direct-to-consumer online rental and subscription platform for furniture and home appliances.
As of September 30, 2025, Rentomojo had 2.28 lakh live subscribers across 22 cities, supported by 21 warehouses, with around 4.44 lakh sq ft of warehousing space.
It also operates 67 experience stores and has a portfolio of 7,28,773 live products.
For the six months ended September 30, 2025, the company posted revenue from operations of Rs 176.61 crore and a profit after tax of Rs 61.38 crore.
In FY25, revenue from operations stood at Rs 265.96 crore, while profit after tax was Rs 43.11 crore.
Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are the book-running lead managers to the issue.
