Legal dispute over IPO shares at Rentomojo.
Rentomojo’s cofounder and former COO, Ajay Nain, has filed a petition with the Bengaluru bench of the National Company Law Tribunal (NCLT) to stall the company’s initial public offering (IPO). The petition was filed just days before Rentomojo submitted its draft red herring prospectus (DRHP) to SEBI.
Nain, who departed Rentomojo in 2018, four years after its inception, alleges oppression and mismanagement. The petition, filed on March 25, names the company, its promoter, directors, CFO, RM Employee Benefit Trust, and Beacon Trusteeship Limited as respondents.
At the heart of the dispute is a share purchase agreement dated August 22, 2023, under which Nain sold 2,223 equity shares—representing approximately 9.41% of the company at the time—to the RM Employee Benefit Trust. Nain claims that incomplete or inaccurate information was provided during this transaction and is seeking to have the share sale declared void and his shareholding restored.
In addition to seeking the restoration of his shares, Nain is requesting the removal of the promoter from the board and any managerial role. He also seeks an injunction to prevent the transfer of shares held by the RM Employee Benefit Trust or other shareholders in a manner that could prejudice his interests. Furthermore, Nain has requested the tribunal to restrain Rentomojo from filing its DRHP with SEBI or taking further steps towards the proposed IPO.
Rentomojo has stated that the matter is yet to be listed for hearing. However, as a precautionary measure, the company 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 its side being heard.
The RM Employee Benefit Trust was established by Rentomojo to facilitate share-based payments to its employees. The shares held by the trust are treated as treasury shares, with the entity holding 48.93 Lakh shares, representing a 4.83% stake in the company.
Meanwhile, Nain left Rentomojo in 2018 to establish Gully Network, an enterprise tech startup. After leaving Gully Network in 2023, he now 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 plans to 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.
The proceeds from the fresh issue will be used to expand offline presence, establish 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 operates 21 warehouses across 22 cities and has a portfolio of 7.29 Lakh products as of September 30, 2025. In H1 FY26, Rentomojo 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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