In SEBI's parlance, the issuance of the final observation is a go-ahead to proceed with the IPO.

The approval came over three months after RentoMojo filed its draft IPO papers. As per the DRHP, the proposed IPO will comprise a fresh issue of shares worth up to ₹150 Cr and an offer for sale (OFS) of up to 2.84 Cr shares by existing shareholders.

Investors including Accel, Chiratae, Edelweiss Mutual Fund, and GMO Venture plan to sell shares through the OFS. Cofounder Geetansh Bamania will also offload up to 20.07 lakh shares as part of the issue.

The proceeds from the fresh issue will be used to expand RentoMojo’s offline footprint, set up new warehouses, repay certain borrowings and for general corporate purposes.

Founded in 2014 by Geetansh Bamania and Ajay Nain, the startup offers subscription-based rentals of furniture, appliances and home essentials. As of September 30, 2025, it operated across 22 Indian cities through 21 warehouses and managed a portfolio of 7.29 Lakh products.

RentoMojo also strengthened its financial performance ahead of the public listing. In the first half of FY26, it reported a profit after tax (PAT) of ₹61.4 Cr on an operating revenue of ₹176.6 Cr, aided by a tax credit of ₹32.8 Cr.

In FY25, its net profit jumped 92% YoY to ₹43.1 Cr, while operating revenue grew 38% to ₹266 Cr from ₹192.7 Cr in FY24.

It is pertinent to mention that the IPO-bound startup is embroiled in a legal dispute with its cofounder and former COO Nain.

Nain moved the Bengaluru bench of the NCLT, earlier this year, alleging that he was fraudulently induced into selling his stake in 2023 at a significantly undervalued price. He is seeking to block the IPO until the matter is resolved.

RentoMojo has not commented on the allegations so far, citing the case as sub judice, while disclosing the pending litigation in its DRHP.