Rentomojo Sees Growth in Tier-2/3 Markets and GCC-Led Urbanisation as Key Drivers for Its Next Expansion Phase

Rentomojo Sees Strong Traction in Tier-2 and Tier-3 Cities Amid India's Urban Transformation

Rentomojo, a furniture and appliance rental platform, is poised to capitalize on India's next consumption wave, driven by the growth of global capability centres (GCCs) and industrial clusters. As a result, demand is increasingly emerging from Tier-2 and Tier-3 cities, where workforce mobility is accelerating.

According to sources familiar with the company's plans, Rentomojo is seeing strong traction beyond metros, with revenues from cities such as Indore and Lucknow rising 2.73 times and 2.66 times, respectively, between FY25 and the six months ended September 30, 2025. This growth reflects a broader shift in consumption patterns as urbanisation creates new demand hubs outside the top cities.

India's ongoing urban transformation, driven by job creation across GCCs, manufacturing clusters, and startup ecosystems, is increasing workforce mobility and reshaping housing demand. With average urban tenancy at around 1.6 years, a large segment of consumers is opting for flexible living arrangements over ownership of bulky household assets.

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Rising property prices and a supply-demand imbalance in housing have made home ownership less accessible, while nearly 80 percent of rental housing stock remains unfurnished or semi-furnished, placing the burden of setup on tenants. These factors are creating tailwinds for rental and subscription-based models that reduce upfront costs and simplify home setup.

To capitalize on this opportunity, Rentomojo has developed a standardised city expansion playbook that enables it to enter new markets in a calibrated manner while maintaining capital discipline and predictable unit economics. The company's capital-light approach allows it to scale in line with urbanisation trends without significant upfront investment.

The company is also strengthening its value proposition through features such as free relocation benefits, allowing users to move across cities without incurring additional logistics or repurchase costs. This has helped build a network effect, where a wider city presence enhances customer stickiness and supports repeat usage.

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Rentomojo plans to raise around Rs 150 crore in fresh capital through its IPO to support its next phase of growth, with a focus on selectively expanding into markets that align with its core mobility-driven rental model.