In India, renting has been a way of life for generations. In the past, however, the rental business consisted mainly of high-value items, including houses and wedding dresses. But now, it is becoming increasingly common to rent items with a low value, like home appliances and furniture. As far as renting is concerned, furniture is a category which is gaining traction. Growing student communities in top eight cities and an influx of working classes are mainly responsible for this growth. A majority of evolved consumers like to experiment with furnishings occasionally. Several rental companies cater to the demands of those in metropolitan areas, including Rentomojo, CityFurnish, Furlenco, Rentickle, GrabOnRent, RentOnGo, Pepperfry, Fabrento, Guarented, and others.
Three years after its launch, RentoMojo has amassed more than 25,000 subscribers across eight Indian cities and continues to grow by 10 to 15 percent month-over-month. The company based in Bengaluru inevitably contributes most of its business through the sale of furniture and appliances.
It is like watching a baby grow when you are running a product company, especially one that produces consumer tech. Geetansh Bamania, the co-founder and chief executive officer of RentoMojo, can relate his journey with his brother, who is yet to become a father.
The path to success involves making mistakes, but there will be friends and partners with whom he works. This group will create and stand for its identity, while solving a global problem. We are motivated by this to anticipate new challenges, to push limits to solve them, and to continue progressing,” said Bamania.
Subscription economy driven by income disparity
Development and developing countries have vastly different purchasing power. In addressing this issue, Rentomojo offers a comfortable, necessary life to the young generation that is suffering from low GDP per capita.
Although subscribing to consumer products through leasing offers numerous advantages, such as being cheaper than purchasing and more flexible than purchasing. Indian consumers are still getting used to this concept. According to Bamania, the challenge is reaching out to our target audience and influencing them with the appropriate marketing mix at an optimum investment.
This is solved by RentoMojo, a platform which focuses on useful content, generating awareness, and sending out communication primarily focused on informing the customers about the benefits of renting. Airbnb, Uber, and lending clubs faced similar challenges at their inception, said Bamania.
Finances and funding
As part of its Series B round led by Bain Capital Ventures, which includes Ex Co-Founder Renaud Laplanche, and current investors Accel Partners and IDG Ventures, RentoMojo recently raised $10 million. The consumer leasing fund aims to mature the brand and educate consumers about the concept of consumer leasing, added Bamania. In its three rounds of financing, the startup has raised more than $17 million.
The RoC filings with Ministry of Corporate Affairs (MCA) indicate RentoMojo lost $1.2 million (Rs 7.85 crore) in financial year 2015-16, compared to revenue of $300K (Rs 1.92 crore).
Renting furniture & appliances online: Market opportunity and competitive landscape
Currently, subscription-based or technology-enabled rental spaces remain in their infancy, however rising urbanisation and frequent migration of the working class to different cities are likely to propel the growth of online rental services. A little more than one percent of the furniture market in India is online, despite 90 percent of it being unorganized.
Home furniture is positioned as the 25th largest market in the world, up from 250 million in online sales, based on a report by Redseer Consulting. As a result, by 2020, home furniture sales are expected to be valued at $35 billion, with $700 million coming from the Internet.
Direct and indirect competition can be found in this space. Bamania believes that asset light business models are the only way to scale and crack global subscription business which is why none of scaled up companies in subscription economy have asset light models.
The RentoMojo business model is different from those of the above-mentioned companies since RentoMojo does not own most of its inventory. Consequently, this lowers the cost and risk of operating the company. Our asset-light business model gives us the ability to expand to a new location at a moment’s notice, increase our partner base, and expand our capacity. Investing in R&D can be accomplished by outsourcing or asset sharing,” concludes Bamania.
Until you can buy a piece of furniture, renting furniture might be your only option. We also provide furniture for those people moving into a new home. It’s quite innovative and will fulfill all your furniture needs, so Rentickle is the one to turn to.
Rentickle Bangalore’s incarnation
Amit Sodhi and Vineet Chawla, two close family friends based in Delhi, started My Homes For Rent in 2016. They were determined to scale the business considerably. They took on the market with a bang when other leasing agencies would not provide proper furniture or even provide furniture in the proper state.
In addition to offering effective services in Delhi and other cities, the company is very insistent on providing quality home appliances and gadgets that can be rented out periodically on a periodic basis. Rentickle offers quality services, and that is what sets it apart.
There is a lot to learn about Rentickle Bangalore based on reviews. Of all they have to offer, they certainly provide the best services. Their 55 employees handle all aspects of manufacturing and renting furniture from the beginning to the end.
In addition, they have other electronic appliances which they can utilize to ensure the target audience is broader. Customers are highly satisfied, and that’s what makes them stand out in such a very lucrative business.
Rentickle’s plan for the future
The company continues to make progress, and received well over $4 million in investments and seed funding from several companies to run their operations effectively.
The company also plans to expand to other cities and become a dominant force. Planned activities include entering the market for baby furniture, gym equipment, and other products.
In spite of fierce competition from other companies, Rentickle’s quality and customer service has made them the best furniture rental company, and they have become the premier rentals company for furniture.
Rentomojo and Rentickle are two of the fastest growing companies in India. Their size and quality is not matched by any other company in the country. There are many others companies in India that offer some amazing services to the community. What these companies are trying to do is really hit a jackpot. This blog covers Rentomojo and Rentickle, two huge companies that are trying to dominate the Indian market.
With the rise of the Indian economy, more and more opportunities have opened up. The business landscape has been changing as a result. When Rentomojo, a P2P rental marketplace came into existence, it shook up the industry by introducing a new trend of rental marketplaces. The concept was met with great success and it continues to be one of the best rental marketplaces in India.