RentoMojo is a consumer product leasing business that raises lease capital from financial institutions for products rented to consumers for long-term periods

Bangalore-based consumer leasing startup RentoMojo has raised US$10 million in Series B funding from Bain Capital Ventures, and Renaud Laplanche, Co-founder and CEO of Upgrade and Founder and ex-CEO of Lending Club. Existing investors Accel Partners and IDG Ventures also co-invested.

The funds will be used to further strengthen the product, finish building a stellar leadership team, and expand into new categories and geographies.

As part of the deal, Bain Capital MD Salil Deshpande, as well as Laplanche have joined the board.

The fresh capital infusion comes a year after the firm secured US$5 million in Series A round of funding from IDG Ventures and Accel Partners. This takes its total funding to US$17 million.

Founded in 2014 by IIT alumnus Geetansh Bamania, RentoMojo is an online rental company aiming to revolutionise the way people meet their lifestyle needs. It is essentially a consumer product leasing business that raises lease capital from financial institutions for products rented to consumers for long-term periods, typically 18 months. It offers rental services for everything you need — from furniture, appliances, trekking equipment to bikes.

Also Read: India’s Rentomojo wants you to move houses without any baggage

Since inception, RentoMojo has expanded to Pune, Mumbai, Bangalore, Delhi, Chennai and Hyderabad, with over 25,000 subscribers on the platform.

Bamania said: “India is credit-constrained. We have consumer lending, but not consumer leasing. We believe that the leasing value-proposition is stronger than lending, especially for today’s youth which opts to pay as they use, rather than buying. Innovation is at the core of everything we do.”

“In the last ten years, I’ve met more than a hundred companies implementing some variation of marketplaces for credit, lease, or rental in some region of the world. RentoMojo is hands down the most impressive I’ve seen in terms of clarity of vision and business model, early execution that already generates amazing economic returns, and a pretty straight path to making it a very big business capable of changing the lives of millions of people,” Laplanche said.

“In India’s credit-constrained economy, RentoMojo has built a defensible beachhead in multiple categories in an underserved sector in the subscription economy, with a capital-efficient two-sided marketplace, no balance-sheet risk and network effects at scale,” said Deshpande.

Bain Capital has helped launch and commercialise more than 200 companies since its founding in 2000. With US$3.6 billion under management, the firm focuses on a mix of early- and growth-stage investments across enterprise software, infrastructure software, fintech, and industries being transformed by data.

In the last 12 months the firm had three exits over US$1 billion — Jet.com (Walmart), Blue Coat Systems (Symantec) and SquareTrade (Allstate). Recent new and follow-on investments include Signifyd, Frame, Sendgrid, Redis Labs, OpenFin, Sysdig, Roofstock, DocuSign and Tealium.

Another startup operating in this space is 4-year-old Furlenco which had secured US$6 million in funding from India-focused VC fund Lightbox Ventures in March 2015.

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