~Offers Apple, Google and Samsung smartphones on Rental Monthly Instalments (RMI)~
Bengaluru, India: RentoMojo, a pioneer in Fintech leasing and patron of subscription centred lifestyle, announces the launch of mobile phones on its platform. A first of its kind in the country, it allows consumers to subscribe to or obtain smartphones on lease, through the company’s RMI (Rental Monthly Instalments) system, a lucrative proposition, as opposed to purchasing and owning.
The company currently offers Apple, Google and Samsung, products on monthly rentals ranging from Rs.2,099 up to Rs.9,299 with six, twelve, eighteen and twenty-four-month tenures. The products currently on offer are – Apple’s iPhone X and 8, Samsung’s Galaxy S9+, S9, Note 8 and Google Pixel 2. This new service offering is currently available in Bengaluru, Delhi, Gurgaon, Mumbai and Noida and will expand to Chennai, Hyderabad and Pune in the next quarter.
RentoMojo’s innovative RMI model creates value by offering devices against monthly pay-outs that are lesser than the traditional ‘EMI with interest’ option associated with purchase and ownership. A customer opting to procure a mobile handset through this arrangement for a period of one year, roughly pays half as much RMI, compared to EMI for the same tenure. Considering the relatively low lifespan of mobile handsets, this arrangement offers the perfect opportunity to upgrade and keep up with the latest device innovation, frequently and at a significantly lower cost. In addition, a subscriber also has the option of owning the product by paying a certain sum, post the lease period.
Geetansh Bamania, Founder and CEO at RentoMojo said, “With technology advancing at pace, new and upgraded versions of mobile phones are being introduced every year – customers are now looking at changing their phones more often than before. RentoMojo’s RMI option gives them the perfect opportunity to do so with a cost efficient and flexible rental monthly instalment option.”
He further added, ”We are looking at this becoming 40% of the overall revenue at scale and increasing our customer base by 50% in the next few quarters”.
RentoMojo also offers household appliances, furniture and two-wheelers on lease for tenures ranging from 3 to 36 months, with the option of Rent2Own. The RMI payable on these products factor in the tenure, with lesser monthly pay-outs on longer tenures and vice versa. By creating an innovative financial option in the form of RMI, RentoMojo has made a mark for itself in the Fintech lending space. It has also implemented advanced algorithms using Machine Learning, for risk assessment and optimum stock utilization.
The company has so far raised $17 million through pre-series, series A and B funding, from Accel Partners, IDG Ventures, Bain Capital and Renaud Laplanche. In 2018, the company partnered with Zefo, the online marketplace for pre-owned furniture appliances to provide their customers with the RMI option. The enterprise currently operates in 8 cities, Bengaluru, Pune, Mumbai, Hyderabad, Chennai, Delhi, Gurgaon and Noida.