Deal Overview
Multi-stage venture firm Venture Catalysts++ has successfully executed a partial exit from Rentomojo, the prominent D2C rental and subscription platform. The transaction, completed in January 2026, generated a 3.43x multiple on invested capital (MOIC) with an XIRR of 20.27%.
Company Background and Traction
Founded to disrupt the furniture and appliance ownership model, Rentomojo has demonstrated significant operational maturity. The company reported a 38% year-on-year revenue increase in FY25, reaching Rs 266 crore, while profits surged by 92% compared to the previous fiscal year.
Market Context and Strategic Implications
The exit provides liquidity to Venture Catalysts while introducing new investors to the cap table ahead of Rentomojo’s planned IPO. However, the path to public markets faces headwinds; former co-founder and director Ajay Nain has filed a plea with the National Company Law Tribunal (NCLT) in an attempt to halt the listing process.
Key Takeaways for Founders
- Strategic Liquidity: Secondary transactions serve as a critical mechanism for early investors to realize gains while allowing the startup to continue its growth trajectory.
- Financial Discipline: Despite the capital-intensive nature of the rental industry, Rentomojo’s ability to scale revenue alongside profitability was a key driver for investor interest.
- Governance Risks: High-growth companies must manage internal shareholder relations and governance proactively to avoid legal hurdles that can jeopardize exit timelines.