RentoMojo, the furniture and appliance rental startup, officially filed its red herring prospectus aiming for an IPO in September, showcasing robust financial growth despite some structural challenges. Meanwhile, Uber India is reducing its workforce by approximately 200 jobs as part of a broader global downsizing effort.
- RentoMojo files IPO with fresh issue and OFS components
- Uber India lays off around 200 employees in global restructuring
- Simple Energy and Furlenco show strong growth in EV and furniture rentals
What happened
RentoMojo has filed its red herring prospectus with SEBI and plans to open its IPO subscription from September 9 to 11. The document reveals a public issue comprising a ₹150 crore fresh issue and an offer-for-sale of up to 2.7 crore shares by early investors and cofounders. The funds raised will be deployed to expand offline operations, build new warehouses, repay debt, and cover general corporate expenses.
In parallel developments, Uber India announced layoffs impacting approximately 200-250 employees, mainly from AI, technology, and operations teams. This is part of a global initiative by Uber to slash about 10% of its workforce, simplifying management layers and focusing resources on core mobility, delivery, and autonomous vehicle projects.
Why it matters
RentoMojo’s strong financials, including a 142% year-over-year increase in profit after tax and a 45.5% revenue jump in FY26, demonstrate the viability of subscription-driven rental models in India’s urban markets. The IPO will support further offline expansion, which is expected to lower capital costs and improve operating leverage. However, there are underlying risks such as a one-time tax credit inflating profit figures and legal disputes that may cloud investor confidence.
The layoffs at Uber India reflect broader challenges faced by tech giants in balancing growth ambitions with cost efficiency amid changing global economic conditions. This downsizing affects critical divisions and signals a strategic reorientation, which could influence the competitive landscape of ride-hailing and AI services in India.
What to watch next
Investor response to RentoMojo’s IPO will be a key indicator of market appetite for subscription rental businesses in India, particularly amid increasing competition from players like Furlenco, which also reported strong profitability and revenue growth in FY26. Monitoring how RentoMojo handles the ongoing lawsuit and competition will be essential for assessing its long-term prospects.
In the near term, watch for continued workforce adjustments and strategic moves within Uber India and other global tech companies with operations in the country. Additionally, emerging players like Simple Energy are expanding aggressively in the mass-market electric scooter segment, aiming to capitalize on India’s growing EV adoption and potentially reshaping mobility options.