Ajay Nain, the cofounder and former COO of Rentomojo, has taken legal action against the company by filing a petition with the National Company Law Tribunal (NCLT) in Bengaluru. This move comes just days before Rentomojo submitted its draft red herring prospectus for an initial public offering (IPO).
Nain, who departed from the company in 2018, is alleging oppression and mismanagement, aiming to halt the IPO process. His petition, filed on March 25, names several parties as respondents, including the company itself, its promoter, directors, and the RM Employee Benefit Trust.
In a recent transaction, Nain sold 2,223 equity shares, which accounted for approximately 9.41% of the company, to the RM Employee Benefit Trust. He claims that he was misled by incomplete or inaccurate information during this sale and is seeking to have the transaction declared void, along with the restoration of his shareholding.
Additionally, Nain is requesting the removal of the promoter from any managerial position within the company and an injunction to prevent the transfer of shares that could affect his interests. He has also asked the tribunal to stop the company from proceeding with its draft red herring prospectus or any steps towards the IPO.
As of now, the matter has not been scheduled for a hearing. To safeguard its interests, Rentomojo has filed caveats with the NCLT and other relevant forums.
The RM Employee Benefit Trust was established to facilitate share-based payments to employees, currently holding 48.93 lakh shares, which is about 4.83% of Rentomojo.
After leaving Rentomojo, Nain founded Gully Network, an enterprise tech startup, in 2018, and transitioned to a growth consultant role at Turno, an EV fintech startup, in 2023.
On March 27, Rentomojo officially filed its DRHP with SEBI for the IPO, which includes a fresh issue of shares valued up to ₹150 crore and an offer-for-sale (OFS) of up to 2.84 crore shares. Major investors such as Accel, Chiratae, and Edelweiss MF are expected to participate in the OFS, with Accel planning to sell the largest stake of 78.47 lakh shares.
Proceeds from the IPO are intended for expanding the company's offline presence, establishing warehouses, repaying debts, and fulfilling general corporate requirements.
Founded in 2014 by Geetansh Bamania and Nain, Rentomojo operates a subscription-based rental service for furniture and home essentials, boasting a portfolio of 7.29 lakh products across 21 warehouses in 22 cities as of September 30, 2025.
Financially, Rentomojo has demonstrated significant growth, reporting a profit after tax of ₹61.4 crore on operating revenue of ₹176.6 crore for the first half of FY26. In FY25, the company's net profit surged by 92% to ₹43.1 crore, with revenues increasing by 38% to ₹266 crore.
