So you have decided to buy some furniture or appliances for your home by paying the full amount up front or in EMIs, in which case you either end up paying a huge amount that can be used for some other appreciating investment, or end up paying more than the actual amount because of the interest rates.
What if you could rent the furniture you desire by paying a nominal amount every month and still use it as long as you need. This is where the renting company Rentomojo comes in to play.
Founded in 2014, Rentomojo started as a rental business but has now evolved as a fintech model where the customers can lease furniture, appliances, and two-wheelers by paying an extremely affordable RMI (Rental Monthly Installment).
We recently had a chance to attend a meetup organized by Rentomojo where the company highlighted its business model and its plans in the pipeline. Founded by Geetansh Bamania, Rentomojo is a consumer product leasing business, which allows the users to #smartlyown, i.e., rent furniture, appliances, or even motorcycles for a period of 12-18 months by paying RMI (Rental Monthly Installment).
Geetansh Bamania, CEO & Founder, Rentomojo said, “Usually renting is considered for a longer duration. A lot of customers also get a strong sense of ownership once they buy the products. What we also realized that, although the perception of renting could be for a smaller duration, the average rental tenure of our customers is 12-18 months, which itself makes us very different than a typical rental model. With an option of owning, if the customer wants to after he has rented, where he is paying a nominal RMI, is a certain new way of ownership and that certainly makes us different than a usual renting company.”
How is RMI better than EMI?
There are so many benefits that come along with it, which are not available with EMI, and flexibility and non-commitment to the products are the biggest of them. Let’s take a look at the chart below.
As you can see, the biggest advantage of RMI is that you do not have your money stuck in a depreciating asset and instead, it can be used for other beneficial investments. The rented product can be returned anytime or even swapped with a different model. Rentomojo owns all the maintenance of the rented product unless there is major damage. Also if the consumer is moving to a new city, the rented products are all relocated for free of cost or at a very minimal cost compared to other packers and movers.
With the new offering of ‘Rent-To-Own’ option that has been launched by the company, the consumers can even purchase the rented out product after few months, if they feel a need for it. This is how the concept has broadened to a wide universe to the customers who have always considered renting as a financial decision.
Some of the products were showcased during the event, and everyone seemed to really like the quality offered. There are also products from some big brands that are being offered by the company for renting.
The company has evolved from a rental company to a Fintech solution catering to a particular consumer base that looks to be on the move and does not want to invest in assets that can be rented out with many benefits. Rentomojo is currently operating in eight Indian cities – Bangalore, Pune, Noida, Gurgaon, Delhi, Hyderabad, Chennai, and Mumbai. Plans to expand to other parts of India are in the offing, as are plans to increase the types and number of products that are offered for rent on the platform.