(What The Financials) RentoMojo Vs Furlenco - Who Will Turn The Tables in Furniture Rentals

4/19/2021 [What The Financials] RentoMojo Vs Furlenco: Who Will Turn The Tables In Furniture Rentals?
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[What The Financials]

RentoMojo Vs Furlenco:
Who Will Turn The

Tables In Furniture
Rentals?
Bhumika Khatri
Inc42 Sta
20 Jul'18  7 min read
Furlenco is leading the race right now, but 
Rentomojo’s asset-light model looks set to give it a
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run for its money
“Sharing is caring” — this age-old saying has metamorphosed

to take on a new meaning in the last few years with the
sharing economy picking up the pace in India. ‘Sharing is
economical’ is the new mantra.
Indians, who previously attributed virtue to ownership, are

increasingly adopting the global trend of renting instead of
buying. There’re Uber and Ola for ride sharing, Airbnb for
home sharing, WeWork for coworking, Furlenco and
Rentomojo for furniture rentals etc. According to
PricewaterhouseCoopers, the sharing economy will generate
potential revenues of $335 Bn by 2025 globally.
Furniture and appliance rentals, especially, have found many

takers, with many startups o ering online platforms where
people can select and order furniture through online monthly,
quarterly, or annual rental packages. No more hassle of
maintenance or repair (the company takes care of this) and
lugging along furniture if you move houses or cities.
According to estimates, the overall furniture market in India

generates between $15 Bn to $24 Bn annually. The organised
segment is around 8%-10% and, of this, around 15% is online.
Space is witnessing a growing number of players including

Furlenco, CityFurnish, GrabOnRent, FlatFurnish, and
RentoMojo.
In this week’s edition of What The Financials, we take a look at

two of the major players in the industry — Furlenco and

RentoMojo. Here’s what we found:
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Furlenco Vs RentoMojo:
Inhouse Or Asset-light,
Which Model Works
Better?
Founded by Ajith Mohan Karimpana in 2011, Furlenco is an
online platform o ering furniture for homes on a subscription
basis in Bengaluru, Delhi/NCR, Hyderabad, Chennai, Mumbai,
and Pune.
With a total funding of $30.1 Mn (INR 195 Cr), Furlenco is

backed by Lightbox Ventures, Axis Capital, Kris
Gopalakrishnan’s Pratithi Trust, and Trifecta Capital, among
others.
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
The company posted an operational income of INR 21.16 Cr in
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FY17, a 204% increase from FY16. Its total income in FY17 was
INR 24.34 Cr.
Next, we have RentoMojo, which started its operations three

years after Furlenco — in November 2014 — by IIT-Madras
graduates Geetansh Bamania, Achal Mittal, Ajay Nain, and
Gautam Adukia.
It has a consumer product leasing business that raises lease-

capital from nancial institutions for products rented to
consumers for long periods, typically up to 18 months. The
company currently o ers leases for furniture, appliances, and
bikes, etc.
Also Read:
Is Paytm CEO Vijay Shekhar Sharma The Highest Paid
Unicorn Founder?
 While Furlenco designs and

owns the furniture it rents
out, Rentomojo has a asset-
light model where it ties up

with suppliers to rent out
the furniture.
Till date, Rentomojo has raised $17.1 Mn and has expanded to

Pune, Mumbai, Bengaluru, Delhi, Chennai, and Hyderabad.
The platform, backed by investors such as IDG Ventures and
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Partner, Plus.toBecome
have overA25,000
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subscribers.

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In FY17, the company posted an operational income of INR
13.53 Cr, a 609% increase from FY16. It posted a total income
of INR 15 Cr in FY17.
Furlenco VS Rento
Revenue Tren
INR 26 Cr
INR 24 Cr
INR 22 Cr
INR 20 Cr
INR 18 Cr
INR 16 Cr 
ores
INR 14 Cr
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INR Cro
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INR 12 Cr
INR 10 Cr
INR 8 Cr
INR 6 Cr
INR 4 Cr
INR 2 Cr
0
Furlenco
FY16 FY17
While both the companies have shown signi cant growth in

income with Furlenco leading the race, a clearer picture
emerges when we look at their expenses.
Furlenco VS Rento
Expense Tren
INR 80 Cr
INR 70 Cr
INR 60 Cr
INR 50 Cr 
ores
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INR Cro
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INR 40 Cr
INR 30 Cr
INR 20 Cr
INR 10 Cr
0
Furlenco
FY16 FY17
We found that Furlenco posted total expenses of INR 72.28 Cr

in FY17, a 157% increase from FY16. Notably, in March 2017,
Furlenco added new category — ‘Essentials’, which targets
value-seekers, who largely seem to be in the age group of 22
to 30.
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
Moving on to RentoMojo, the trend remained the same. In
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FY17, the company posted total expenses of INR 37.48 Cr, a
283% increase from FY16.
Inc42 Datalabs analysed their

expenses further and had some
interesting revelations:
The workforce requirement to drive their speci c
business models seems to play a crucial role in the path to
pro tability for the two startups. In FY17, Furlenco had
employee-related expenses of INR 22.5 Cr while
Rentomojo posted employee expenses of INR 12.94 Cr
for the same period. However, as a percentage of the total
expense, in FY17, Furlenco’s employee-related expense
was 31% for and Rentomojo’s was 28%.
Furlenco, factoring in the fact that it designs its own
furniture, posted total expenses of INR 5.3 Cr in FY17 in
distribution, design, photoshoot, and contract labour. On
the other hand, RentoMojo’s asset-light business model
kept its expenses down to INR 2.5 Cr for distribution and
warehousing charges.
In FY17, Furlenco spent around INR 1.86 Cr in repair and
maintenance of its assets. Compare that with that the
leasing expenses of Rentomojo in the same nancial year,

which was INR 2.9 Cr. It must be noted that Furlenco,
which has a private label, cut down the cost of
maintenance while RentoMojo, which leases the
products, is facing issues with the same.
In FY17, 19% of Furlenco’s total expense — INR 13.6 Cr —
was on advertisements and promotions. In the same
period, Rentomojo’s spend on advertising was INR 6.13 Cr
— 16% of its total expense. In January 2017, RentoMojo
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campaign creatively builds awareness among consumers

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about the smarter lifestyle choice of renting rather than
buying furniture.
One of the major di erences in the expenses of the two
startups was the net depreciation and amortisation
charges incurred by them. In FY17, Furlenco posted a net
depreciation and amortisation of INR 9.31 Cr while for
Rentomojo it was just INR 1.5 Cr. The di erences in cost of
depreciation is because Furlenco o ers its owned
products while RentoMojo leases them.
Another major di erence was the nancing cost. The
nancing cost of RentoMojo for FY17 was INR 91.86 Lakhs
while Furlenco spent just INR 5.83 Cr.
Clearly, Rentomojo’s asset-light business model works better

in the Indian context. In FY17, Rentomojo registered a revenue
growth of 7X. While, with higher funding, Furlenco has been
able to grow only 2X. While Furlenco is in ve cities,
Rentomojo is operating in eight.
Losses
For FY17, Furlenco posted a loss of INR 47.9 Cr, an increase of

140% compared to FY16. However, this was much better than
the 529% increase in loss it saw in FY16, as compared to FY15.

The surge in the company’s loss can be largely attributed to
increased costs as it expanded its operations and also
introduced new products.
For RentoMojo, the loss for FY17 was INR 22.4 Cr, an 186%
increase from FY16. However, the losses were controlled
against the whopping 16295% increase it saw in FY16
compared to FY15. As the company is fairly new in the space,
its expansion plans have mostly hiked up its expenses and, 
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thus,
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losses.
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,
Furniture Rentals Set
With the Millennials coming of age and becoming a force to

reckon with in India, the sharing economy has become the
order of the day. And an increasing number of startups are
cashing on this opportunity.
A report by BCG estimated that $23 bn in venture capital

funding has poured into the sharing economy globally since
2010. A new Juniper research report from 2017 expected to
share economy revenues to touch $40.2 bn by 2022, up from
$18.6 bn in 2017.
The furniture rental market is expected to grow at a robust

rate over the forecast period — 2017-2024. In India, the
market for furniture rental is seen to be around $800-850 Mn.
Furlenco might be leading the race right now, but Rentomojo’s

asset-light model seems to be more economical than
Furlenco’s in-house business model.
Looking at the growth rate and presence, Rentomojo can be

expected to match up with Furlenco in the FY18 lings.
[This is a part of the What The Financials (WTF) series

launched by Inc42 Datalabs. We would be exploring the
nancial health of Startups and discuss its key metrics of
growth, to read more articles click here.]

Ajith Mohan Furlenco Online Furniture
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4/19/2021 [What The Financials] RentoMojo Vs Furlenco: Who Will Turn The Tables In Furniture Rentals?

LOGIN BECOME A MEMBER

Join Inc42 PlusSign In

[What The Financials]

Who Will Turn The

“Sharing is caring” — this age-old saying has metamorphosed

Indians, who previously attributed virtue to ownership, are

Furniture and appliance rentals, especially, have found many

According to estimates, the overall furniture market in India

Space is witnessing a growing number of players including

In this week’s edition of What The Financials, we take a look at

With a total funding of $30.1 Mn (INR 195 Cr), Furlenco is

Next, we have RentoMojo, which started its operations three

It has a consumer product leasing business that raises lease-

 While Furlenco designs and

light model where it ties up

Till date, Rentomojo has raised $17.1 Mn and has expanded to

While both the companies have shown signi cant growth in

We found that Furlenco posted total expenses of INR 72.28 Cr

Inc42 Datalabs analysed their

leasing expenses of Rentomojo in the same nancial year,

Clearly, Rentomojo’s asset-light business model works better

For FY17, Furlenco posted a loss of INR 47.9 Cr, an increase of

the 529% increase in loss it saw in FY16, as compared to FY15.

With the Millennials coming of age and becoming a force to

A report by BCG estimated that $23 bn in venture capital

The furniture rental market is expected to grow at a robust

Furlenco might be leading the race right now, but Rentomojo’s

Furlenco’s in-house business model.

Looking at the growth rate and presence, Rentomojo can be

[This is a part of the What The Financials (WTF) series

INC42 PLUS RentoMojo

Note: We at Inc42 take our ethics very seriously. More

INC42 PLUS Recommended

The Makers Summit

Will RBI’s Boost For

One Person Company:

Zerodha Rival 5paisa

Emotix Raises INR 50

Swiggy Raises $343

ps Turning Unicorns Launching The State Of Indian Lockdown-Like Situation

10 Apr'21  4 min read By Sandeep S. 15 Apr'21  3 min read By Romita M. 14 Apr'21  5

©2021 Inc42 All Rights

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