Bangalore-based home furniture and appliance rental startup RentoMojo is raising about US$11 million (Rs 77.72 crore) in a Series C funding round led by existing investors Accel India, and Chiratae Venture.
According to the company’s filings with the Registrar of Companies (RoC) sourced by paper.vc, the Bengaluru-based startup will also see capital infusion from Bain Capital Ventures and Japanese investor GMO Venture Partners.
Accel is subscribing to 3,000 Series C cumulative convertible preference shares (CCPS) of RentoMojo, each at a premium of Rs 92707.42 equating to Rs 27.84 crore while Chiratae via IDG Ventures India Fund II, III will be allotted 2,424 Series C CCPS for an investment of about Rs 22.5 crore. Its trust will acquire 576 shares by investing Rs 5.34 crore.
Meanwhile, Bain Capital is subscribing to a total of 1,500 CCPS for an investment of Rs 13.9 crore, and GMO is pumping in about Rs 6.9 crore by subscribing to the company’s 740 shares.
It is to be noted that Cumulative Convertible Preference Shares (CCPS) means that after certain period of time these shares will be converted into equity capital of the company, i.e. Rentomojo in this case. It is different from debt funding where Debt must be paid back regardless of the company’s financial situation
Frech entrepreneur Renauld Laplanche, who’s also existing investor in Rentomojo, is also taking part in the funding in his personal capacity. Laplanche is the co-founder and CEO of the debt refinancing company, Upgrade.
Prior to this round of funding, Rentomojo last raised $10 million in Series B, in July 2017, from Bain Capital Ventures and Renaud Laplanche along with contributions from Accel Partners and Chiratae Venture (then known as IDG Ventures). Prior to that, the startup had raised $5 million in Series A from IDG Ventures and Accel Partners, India, in July 2016.
In May 2017, Rentomojo had raised unkkown amount in debt financing from IntelleGrow. In 2016. it received $50,000 in non-equity based assistance from Google Launchpad Accelerator.
RentoMojo has raised a total of $28 Mn in funding over seven rounds including the latest one.
Founded by IIT-Madras alumni – Geetansh Bamania, Gautam Adukia, Achal Mittal, and Ajay Nain, RentoMojo is a first-of-its-kind consumer product leasing business that raises lease-capital from financial institutions for products rented to consumers for long-term periods, typically 18 months.