RentoMojo Files IPO Prospectus, Uber India Cuts 200 Jobs
Furniture and appliance rental startup RentoMojo has filed its red herring prospectus for an IPO. Meanwhile, Uber India announced it is laying off approximately 200 employees as part of a global restructuring.
RentoMojo, an Indian startup specializing in furniture and appliance rentals, has submitted its red herring prospectus to the Securities and Exchange Board of India (SEBI), signaling its intent to go public. The initial public offering (IPO) is scheduled to open in September and will include both fresh equity issuance and an offer for sale.
The company plans to utilize the proceeds from the IPO to fund its offline expansion, establish new warehouses, repay debt, and cover general corporate expenses. For the fiscal year 2026, RentoMojo reported a significant increase in net profit after tax, rising by 142%, with operating revenue growing by 45.5%.
RentoMojo operates on a subscription-based model across 22 major urban markets, aiming to leverage the IPO funds to scale its physical operations. This expansion is intended to lower capital costs and enhance long-term operating leverage. The company highlighted predictable subscription-based cash flows as a key strength.
However, the company faces challenges. The reported profit increase was partly due to a one-time tax credit. Additionally, increasing competition could pressure margins and customer acquisition costs. A lawsuit filed by a former co-founder over disputed equity transfers also presents a legal overhang.
In related news, Uber India has announced layoffs affecting approximately 200-250 employees. This reduction is part of a broader global restructuring by the ride-hailing company, which aims to cut around 10% of its worldwide workforce. The Indian layoffs will impact teams in AI, technology, and operations.