Key Takeaways
- • Venture Catalysts++ partially exited Rentomojo in January 2026, generating a 3.43x multiple on invested capital with an XIRR of 20.27% over approximately 6.5 years from initial investment in May 2019.
- • Rentomojo demonstrated strong operational momentum in FY25, reporting 38% year-on-year revenue growth to Rs 266 crore and 92% profit growth, positioning the D2C furniture and appliance rental platform for continued market expansion.
- • The partial exit represents a secondary transaction that provided liquidity to Venture Catalysts while simultaneously attracting new investor capital, with the VC firm maintaining its ongoing stake and support commitment.
- • Rentomojo faces a material legal headwind as former director and co-founder Ajay Nain has filed a petition with the National Company Law Tribunal to block the company's proposed initial public offering.
Summary
Venture Catalysts++, a multi-stage venture capital firm, achieved a notable liquidity event through a partial exit from Rentomojo, the direct-to-consumer furniture and appliance rental platform. Executed in January 2026, the secondary transaction delivered a 3.43x multiple on invested capital alongside an XIRR of 20.27%, representing a 6.5-year hold period from the initial investment made in May 2019. The transaction provided capital return to Venture Catalysts while simultaneously bringing fresh institutional investors into the cap table, underscoring continued market confidence in the rental subscription sector.
Rentomojo's financial performance substantially improved during fiscal year 2025, supporting the valuation multiple. The company reported revenue from operations of Rs 266 crore in FY25, marking a 38% year-on-year increase from Rs 193 crore in FY24. More notably, profit surged 92% during the same period, indicating meaningful progress toward operating leverage and improved unit economics—key metrics institutional investors monitor in capital-light, subscription-model businesses. The company has expanded its geographical footprint across major metropolitan markets while strengthening competitive positioning in the furniture and appliance rental segment.
Despite operational momentum, Rentomojo's path to public markets faces a significant obstacle. Ajay Nain, former director and co-founder, has filed a petition with the National Company Law Tribunal (NCLT) to halt the company's proposed IPO, introducing material regulatory and governance risk. The timing of this legal challenge—coinciding with the company's apparent preparation for public listing—represents a meaningful uncertainty for existing shareholders and prospective public investors. Venture Catalysts, despite the partial exit, has signaled intent to maintain its remaining stake and continue supporting the company's expansion strategy, suggesting confidence in long-term value creation despite near-term regulatory headwinds.
Rentomojo's financial performance substantially improved during fiscal year 2025, supporting the valuation multiple. The company reported revenue from operations of Rs 266 crore in FY25, marking a 38% year-on-year increase from Rs 193 crore in FY24. More notably, profit surged 92% during the same period, indicating meaningful progress toward operating leverage and improved unit economics—key metrics institutional investors monitor in capital-light, subscription-model businesses. The company has expanded its geographical footprint across major metropolitan markets while strengthening competitive positioning in the furniture and appliance rental segment.
Despite operational momentum, Rentomojo's path to public markets faces a significant obstacle. Ajay Nain, former director and co-founder, has filed a petition with the National Company Law Tribunal (NCLT) to halt the company's proposed IPO, introducing material regulatory and governance risk. The timing of this legal challenge—coinciding with the company's apparent preparation for public listing—represents a meaningful uncertainty for existing shareholders and prospective public investors. Venture Catalysts, despite the partial exit, has signaled intent to maintain its remaining stake and continue supporting the company's expansion strategy, suggesting confidence in long-term value creation despite near-term regulatory headwinds.
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