Rentomojo’s cofounder and former COO Ajay Nain filed a petition before the NCLT’s Bengaluru bench days before the company filed its draft red herring prospectus.
The cofounder, who left the company four years after its inception in 2018, is alleging oppression and mismanagement, seeking to halt the company’s proposed initial public offering (IPO). Filed on March 25, the petition names the company, its promoter, directors, chief financial officer, RM Employee Benefit Trust and its trustee Beacon Trusteeship Limited, among others, as respondents.
Nain had sold 2,223 equity shares—representing about 9.41% of the company at the time—to the RM Employee Benefit Trust under a share purchase agreement dated August 22, 2023. In the petition, he has alleged that incomplete or inaccurate information was shared with him during the transaction and has sought to have the share sale declared void ab initio and his shareholding restored.
He has also sought several other reliefs, including the removal of the promoter from the board and any managerial role, and an injunction preventing the transfer of shares held by the RM Employee Benefit Trust or other shareholders in a manner that could prejudice his interests.
In addition, Nain has requested the tribunal to restrain the company from filing its draft red herring prospectus (DRHP) with SEBI or taking further steps towards the proposed IPO.
The company said the matter is yet to be listed for hearing. As a precautionary step, it has filed caveats before the NCLT and other appropriate forums on March 26 and March 27, 2026, to ensure that no interim orders are passed without hearing its side.
Rentomojo set up RM Employee Benefit Trust to provide a share-based payment to its employees The shares held by the entity are treated as “treasury shares”. It holds 48.93 Lakh shares or 4.83% stake in the company.
Meanwhile, Nain left the company in 2018 to set up an enterprise tech startup Gully Network. He left Gully Network in 2023 and currently works as a growth consultant for EV fintech startup Turno
Rentomojo filed its DRHP with SEBI for an IPO on March 27. The proposed IPO includes a fresh issue of shares worth up to ₹150 Cr and an offer-for-sale (OFS) of up to 2.84 Cr shares.
Investors such as Accel, Chiratae, Edelweiss MF, and GMO Venture plan to sell shares through the OFS, while co-founder Geetansh Bamania intends to offload up to 20.07 Lakh shares.
Accel India will sell the largest stake at 78.47 Lakh shares, followed by Edelweiss (32.03 Lakh) and Chiratae (29.03 Lakh). Other individual shareholders, including Gautam Dalmia (Dalmia Bharat) and Nitish Mittersain (Nazara), are also expected to reduce their holdings.
Proceeds from the fresh issue will be used to expand offline presence, set up warehouses, repay debt, and meet general corporate needs.
Founded in 2014 by Geetansh Bamania and Nain, Rentomojo operates a subscription-based rental platform for furniture, appliances, and home essentials. It runs 21 warehouses across 22 cities and has a portfolio of 7.29 Lakh products as of September 30, 2025.
On the financial front, Rentomojo has seen strong growth. In H1 FY26 (six months ended September 30, 2025), it reported a profit after tax of ₹61.4 Cr on operating revenue of ₹176.6 Cr, including a ₹32.8 Cr tax credit. For FY25, net profit jumped 92% to ₹43.1 Cr from ₹22.4 Cr, while revenue rose 38% to ₹266 Cr from ₹192.7 Cr.
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