Indian Rental Furniture Market Worth Rs 33,500 Cr Now: Redseer
India’s rental furniture and appliance market, dominated by the likes of RentoMojo, Furlenco, Rentickle, and CityFurnish, is now worth Rs 33,500 crore, with top 20 cities accounting for 55% of the total addressable market, as per data from management consultancy Redseer.
According to Redseer’s research, Indian furniture rental startups can serve 14 million households, with a monthly average order value of Rs1,900. The average rental duration is usually 13 months. Also, as 43% of India’s urban population spread across top 20 cities contribute to more than half of the total market, the industry is expected to grow at a compound annual growth rate of 11% by 2025.
The top 20 cities are the major drivers because they house a bulk of young working population, said Redseer highlighting its research. Findings of the survey also show that awareness about renting furniture and appliances is high due to better marketing, word of mouth, and positive reviews. Among those surveyed, 25-30% of respondents were past product users.
“The market is poised to grow significantly as there is a strong amount of awareness and usage even in tier 1 cities (beyond the top metros) which shows definite potential, however, the bigger players are still not present in these markets. But as the pandemic induced reverse migration, bachelors, students have moved back to their hometowns to live with families and save on their expenses. This will create enough opportunities for these players for them to foray into these markets,” said Redseer.
In March this year, online furniture rental startup, Rentomojo raised Rs10 crore in a fresh tranche from existing investors Accel and Chiratae Ventures as part of its ongoing Series C funding round. Competitor, Furlenco has also been raising debt financing, over the last few months, as it looks to kickoff its Series D round.