Home appliances and furniture rental firm Rentomojo, run by Edunetwork Pvt. Ltd, has received funds in the form of venture debt from IntelleGrow.
In July last year, RentoMojo had raised $5 million in its first strategic round Series A funding from existing investors IDG Ventures and Accel Partners. Prior to this, in November 2015, RentoMojo raised around $2 million in funding from IDG Ventures India and Accel Partners India. The startup had raised angel funding from Snapdeal’s former Chief Product Officer Anand Chandrasekaran, GSF India founder Rajesh Sawhney and other angel investors. Founded in 2014, Rentomojo currently operates in eight cities namely Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Hyderabad and Chennai.
While confirming the development, Geetansh Bamania said, the loan from IntelleGrow was raised for operational needs and assets deployment. Without providing more details, he added that the company, which was founded in 2014, is in talks to raise further funds. However, he clarified that this venture debt was not a part of any round. Venture debt is emerging as a popular funding options for firms that are looking for interim investments without diluting equity. Within India, companies such as Temasek-backed Innoven Capital and domestic venture debt fund Trifecta Capital compete with IntelleGrow in this space.
At present, Intellegrow has 160 companies as its clients, of which 66 were new clients added in FY17 (April 2016-March 2017). In the current financial year, the company plans to add 120 new clients and take the total number to 290 customers. Innoven Capital also counts Rentomojo as one of its clients. Last year, another online furniture rental start-up Furlenco (Kieraya Furnishing Solutions Pvt. Ltd) raised $30 million in a Series B funding round led by existing investor LightBox Ventures, with participation from IntelleGrow.
Furlenco raised $15 million in equity from LightBox Ventures, with participation from new investor Axis Capital, a Hong Kong-based fund, and high net-worth individuals including Gautham Radhakrishnan, partner at Tata Opportunities Fund, among others. The $15 million in debt came from banks such as HDFC Bank Ltd, Kotak Mahindra Bank Ltd and Axis Bank Ltd, apart from venture debt firm IntelleGrow and undisclosed family offices.