1. Balance sheet deleveraging - The company is allocating ₹70.00 crore from IPO fresh issue proceeds in FY27 to repay two IDFC FIRST Bank term loans carrying 9.75% to 10.00% interest rates. Retiring 38.98% of total outstanding debt reduces annual interest expenses and frees operational cash flow for fleet growth.
2. Rental fleet expansion - Net carrying value of furniture and appliances reached ₹351.63 crore as of September 30, 2025, driven by ₹87.28 crore in H1 FY26 capex to support 728,773 live items under full direct ownership. Expanding the owned fleet eliminated third-party rental costs and built ₹412.86 crore in forward contracted revenue across an expanding market.
3. Supply chain infrastructure - IPO fresh issue proceeds allocate ₹22.70 crore across FY27 to FY29 for warehouse lease rentals, expanding beyond the existing footprint of 21 facilities totaling 444,486 square feet. Expanding dedicated logistics capacity cut average delivery turnaround times from 4.06 days in FY23 to 2.54 days in H1 FY26 across 22 cities.
4. Experience store rollout - Rentomojo has earmarked ₹19.80 crore of fresh issue proceeds between FY27 and FY29 to fund lease rentals for its offline network, which expanded to 67 stores across 12 cities by September 30, 2025. Physical outlets function as lead-generation hubs to reduce customer onboarding friction and supplement direct digital acquisition.
5. Private-label appliance manufacturing - The company partnered with Dixon Technologies for private-label refrigerators and washing machines while scaling proprietary water purifiers priced at ₹391 per month with automated filter replacements. Water purifier subscriptions expanded at a 590.39% CAGR between FY23 and FY25, offering higher-margin recurring revenue in a fast-growing rental category.
6. Asset refurbishment infrastructure - An operational base of over 1,688 technicians and dedicated refurbishment spending of ₹14.90 crore in FY25 completed 1,375,268 unit overhauls between FY23 and H1 FY26. Extending useful asset life to 10 years enabled mature cohorts to generate over 4.2x to 4.9x revenue on original cost while keeping occupancy above 83%.
7. Digital platform automation - Proprietary software automates an 11-touchpoint customer lifecycle, driving live subscriber counts to 227,511 as of September 30, 2025, with organic channels contributing 58.71% of web traffic in H1 FY26. Automated onboarding and collections lifted repeat order rates to 52.18% and lengthened average subscription tenures to 18.82 months.