Rentomojo has closed FY25 with its third consecutive year of profitability, proving a steady turnaround for a sector that has historically struggled with high capital costs and long payback cycles. The Bengaluru-based rental consumer tech company reported a 92% jump in net profit to ₹43.07 crore in FY25, compared with ₹22.49 crore in FY24 and ₹6.2 crore in FY23, according to its latest financial disclosure.

The profit growth came alongside a sharp rise in operating scale. Net rental revenue from operations stood at ₹265.96 crore in FY25, translating into a 48.24% CAGR between FY23 and FY25. Operating leverage was visible in margins as well, with EBITDA increasing to ₹118.41 crore, up from ₹78.23 crore in FY24 and ₹27.14 crore in FY23.

Unlike several consumer internet companies that remain loss-making despite scale, Rentomojo has focused on profitability through tighter cost controls and asset utilisation.

Founder and CEO Geetansh Bamania said the company’s performance reflects a subscription-first model backed by disciplined execution. “At its core, Rentomojo is a consumer tech company building a subscription-first model that has delivered sustained profitability, while solving a major problem for its consumers,” he said, adding that automation and refurbishment-led operations have played a key role.

The company’s asset-heavy business has also shown improving capital efficiency. Return on capital employed (ROCE) stood at 25.1% in FY25, indicating stronger returns from inventory-led growth. Rentomojo currently manages over 7.7 lakh rental items and serves a live subscriber base of more than 2.2 lakh customers, a scale that helps spread fixed costs and improve occupancy levels.

Geographically, the company continues to expand its offline presence to complement its online-first model. It now operates in 23 cities and has scaled up to 71 experience stores, which the company says has helped build trust and accelerate adoption, especially in large-ticket categories like furniture and appliances. “This growing offline footprint, combined with our subscription-first model, is deepening consumer trust,” Bamania added.

So why do most players that enter the furniture and appliance rental space mostly fold or fail to scale?

“It’s a difficult business,” Bamania had told Fortune India earlier. “This is not e-commerce. It’s not just logistics. It’s also warehousing, refurbishing, balance sheet management, and tech,” Bamania says. Rentomojo operates one of India’s largest refurbishing units, with 1,600 carpenters, tailors, and technicians extending the asset lifecycle to 8–10 years. "We spend a couple of million dollars every year just on refurbishing units,” he said. Many startups either come in with either a logistics mindset or a lending background but couldn’t integrate the full stack of what the business demands.

Rentomojo’s portfolio spans furniture and appliances, with newer categories such as water purifiers gaining traction among urban consumers who prefer access over ownership. The company has also leaned into a refurbishment-led circular economy model, reinvesting in reuse and lifecycle extension of products to improve margins while aligning with sustainability goals.

Founded in 2014, Rentomojo is backed by investors including Accel, Chiratae Growth Fund, Edelweiss Discovery Fund, and ValueQuest S.C.A.L.E. Fund.