Sharing Economy Hits India For On-the-Go Apartment Dwellers

Bangalore-based Rentomojo, which provides “pay as you use” rentals across home, office and automobile verticals, has raised $2 million in a Pre-Series A round from Accel Partners and IDG Ventures India. The startup had previously raised seed capital from London-based investors earlier this year.

Rentomojo operates as an on-demand marketplace for furniture appliances. Opting for an asset-light model, the startup does not own any of the items it puts out on rent, instead choosing to partner with suppliers who want to earn rental income. Rentomojo reports 2,000 active subscribers on its platform, with a target of 6,000 by March next year and 40% month-on-month growth. The new funds will be used to expand across India, beyond the four cities in which it currently operates: Bengalore, Mumbai, Delhi and Pune. Investment will also be made hiring and marketing.

India is seeing growing urbanization, increasing incomes, and declining savings among working professionals. Backed by investment heavyweights, Rentomojo is a rising star well-positioned to capitalize on the continued rise of the access economy in India.