Little Bit about Rentomojo
Founded in 2014 by IIT alumnus Geetansh Bamania, Rentomojo started as a rental business. Since then, it has evolved as a fintech model where the customers can lease furniture, appliances, and two-wheelers by paying an extremely affordable RMI (Rental Monthly Instalment).
While the renting or leasing out the furniture and appliances itself is a fairly new concept being adopted by India, Rentomojo also believes that a lot of customers might want to own the products as well. Hence, they have announced a new proposition called Rent-to-Own, where the customers will now be able to rent until whatever time they want, after which they can return or own the products.
While I was of the impression that renting out furniture or appliance will not be for more than three months max, Geetansh showed data which indicated that the average rental tenure of their customers is somewhere between 12-18 months, and sometimes even 3 years. With such long-term tenures in the picture, it is very much possible that the leaser might want to then own these products as well, and Rent-to-Own can very much become a thing.
EMI vs. RMI Debate
What I was still not convinced on was the fact that if the tenure I am looking for is two to three years, why would I rent furniture and appliances against buying them? Above all, we do get No Cost EMIs these days. But Geetansh from Rentomojo placed counter-arguments to convince that RMI is a better option than EMI. The concept of both is the same, you don’t want to lock your money into one depreciating asset. But still he showed calculations to justify that RMI will turn out cheaper than EMI.
But the add-ons were what seemed exciting. For instance, after renting furniture or appliances if I get bored of them in a year or so, I can swap it for something new and flashy! That is like redoing my home as per my whims! And then there is zero maintenance fees. If something goes wrong with the appliances, which is not deliberate or major damage, then Rentomojo takes up the cost of fixing it. There is also an annual clean-up service. If you are uncertain and have to vacate a city before the tenure ends, then there is no pain of selling your stuff, you can always close you rental.
Better still, if you are moving to a city that is also serviced by Rentomojo, then they take care of your relocation!! If you have decided to settle in a place and have settled in comfort with the products you rented, then you can as well decide to buy them. Factors like this ease the life of a person who is constantly on the move between the cities!
We had a bloggers meet scheduled with Rentomojo, and this beautiful shiny Royal Enfield was parked at the entrance. I don’t even know driving, but I had this kind of some serious craving to go on a road trip hiring that bike. I need not even spend lakhs and buy it right! May be some day I will learn to ride a bike, rent out this bike, ride to another place, rent out furniture, stay at that place for months and explore it at my leisure with all the comfort of a home. Like, rent out this simple coffee table and call fellow travelers and have a chat over coffee. Sounds exciting no? 🙂