Rentomojo Business Model-
Today with this article we will continue our article series in which we talk about case studies and business model of different startups and big companies. So today I am with you with a new startup company and we will talk about Rentomojo Business Model.
So let’s try to understand this business model in detail and simple way.
Indians receiving the worldwide pattern of leasing as opposed to purchasing.
When you will today deep study about Rentomojo Business Model then you will find this customer problem-centric business model.
There’re Uber and Ola for ride sharing, Airbnb for home sharing. We Work for cooperating, Furlenco and Rentomojo for furniture rentals and so on. As indicated by PricewaterhouseCoopers, the sharing economy will create potential incomes of $335 Bn by 2025 universally.
Furniture and apparatus rentals, particularly, have discovered numerous takers, with numerous new companies offering on the web stages. Where individuals can choose and arrange furniture through the online month to month, quarterly, or yearly rental bundles. No more issue of support or repair (the organization deals with this) and hauling along furniture on the off chance that you move houses or urban areas.
As indicated by assessments, the general furniture advertises in India produces between $15 Bn to $24 Bn yearly. The sorted out fragment is around 8%-10% and, of this, around 15% is on the web.
In the current week’s release of What The Financials, we investigate two of the significant players in the business — Furlenco and RentoMojo.
What is Rentomojo ?
In our day to day life, we just try to decorate our house. Everyone wants to enhance the interior of his house. Want to shoe his house in unique.
Rentomojo and its class competitors made it possible we can also take furniture on rent in our modern era.
Furlenco is India’s first home furniture rental organization situated in Bangalore. It enables you to lease furniture like couch, table, bed, and light on a month to month premise.
RentoMojo is a Mumbai-based startup that lets you lease furniture, home appliances, and two-wheelers much like a house you might lease.
Geetsnsh Barmania Founded Rentomojo In November 2014. After completing graduation worked in Flipcart but then seeing customer needs he decided to go for Startup.
At the point when 27-year old Shiv Shekhar was searching for an extra large bed, a cowhide love seat and a clothes washer, the one believed that continued going through his mind were: does it truly bode well for me to purchase this furniture?
As an advertising chief for a global firm, he needed to move crosswise over urban communities regularly. He felt that purchasing furniture, machines each time he needed to move was a cost he could manage without.
And keep in mind that he had the alternative of completely outfitted spaces like Nestaway, YourNest, YourOwnRoom and Homigo, where he could get outfitted flats, he preferred the opportunity of having his very own private space.
Almost three years after the fact, RentoMojo has recently raised Series B financing of $10 million from Bain Capital Ventures and Renaud Laplanche.
Existing speculators Accel Partners and IDG Ventures additionally partook.
Counting this round of financing, the organization has raised an aggregate $17 million.
In my opinion I say that Rentomojo Business Model is very good and may change full era of buying this for some time.
It will utilize the assets to additionally fortify the item, wrap up an authority group, and venture into new classes and geologies.
At the point when Geetansh began RentoMojo, it was centred around leasing home furniture and goods for a time of three months.
Today, they likewise lease apparatuses and even bikes crosswise over Mumbai, Pune, Hyderabad, Chennai, Pune and NCR (Delhi, Noida and Gurugram).
There are numerous shopper loaning organizations that are endeavouring to tackle the credit requirement in the retail business space, however, there aren’t numerous purchaser renting stages.
In that sense, we have kept the entryways open to make renting (choices) for some sorts of items.”
Today Rentmojo is working in 8 different countries like Banglore, Mumbai, Pune, Delhi, Heydrabad, Noida, Chennai, and Gurgaon.
Rentomojo Business model is can be seen helpful when we see it in longterm vision profitable. Now they in starting going with the loss but in future this industry can acquire buying industry.
How Rentomojo Works:-
In the purchaser loaning model, a client can get any household item or item from a physical retail location or a web-based business stage for a specific EMI. While with a customer renting model, this EMI basically changes over into a ‘lease’ that is paid out over a specific residency.
The base residency for renting out furniture is between three months and three years.
RentoMojo leases the items from NBFCs, monetary organizations, and high total assets people, and thusly rents the items out to the customer.
RentoMojo works with NBFCs and other monetary foundations to fund the buy of the furniture, bicycles and machines that it leases.
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So on the off chance that it gets a four-seater couch set that costs Rs 1 lakh (in addition to the premium that the bank or NBFC charges) it leases it out to a purchaser for a somewhat higher add up to cover the premium and its own edges.
Rentomojo Business Model:-
Salil clarifies that India is as yet a credit-obliged economy and RentoMojo has assembled a solid foothold in different classes in an underserved part of the membership economy.
It is, he says, a capital-productive, two-sided commercial centre with gigantic system impacts at scale, and with no asset report hazard.
Geetansh clarifies that owning an item accompanies the problems of moving the furniture around or exchanging when you migrate.
Here are words about Rentomojo Business Model from Geetansh.
Aside from giving leases that are less expensive than an EMI. Which can even go as low as Rs 99 every month. RentoMojo additionally gives free movement to any of the eight urban areas. It is available in amid the residency time frame.
It professes to have more than 25,000 supporters, and Geetansh trusts that the group still needs to make a great deal of mindfulness around this market and this sort of model.
“A decent sum our present capital will go towards making that mindfulness,” he includes.
Rentmojo business model is very much similar to Furlenco Business model.
Biggest competition they are facing from Furlenco.
Geetansh gauges that the present rental market in India is worth $8-10 billion.
One of the greatest players in the furniture rental space is Furlenco, which has officially raised $36 million since it began in 2011. There are likewise a couple of others like FlatFurnish and CityFurnish.
Rentomojo offers you services via official Website. And they offer you to download their app from Play Store for Android and App Store for Apple.
So having a detailed article on Rentomojo Business Model, at last. I think It is a good business Idea micro niche startup we can say about It. I think now you deeply understood about Rentomojo Business Model.
It is much helpful for who stay for only 5-6 months in one place. They can take furniture on rent for the time they need.
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