Product details

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Abstract

On December 4th 2017, Rentickle, an online furniture and home appliances rental company based in Gurugram, India, had announced that it had raised USD4 million (in a combination of equity and debt, in the ratio 9:11) in a fresh funding round. The basic objective behind raising this fresh capital was to utilise it for the company's geographical expansion, expansion of its product portfolio (inclusion of baby products, fitness products, etc), and also to stimulate internal growth. Rentickle offered products on rent from its platform on 3, 6, 9 and 12-month subscription basis. As of December 2017, the company had around 10,000 loyal customers across the four cities where it operated, namely, Gurgaon, Delhi, Noida and Hyderabad. Rentickle targeted young professionals who were away from their homes, newly married couples, and expatriates who came to India for a short time span. However, despite rising demand for products on rent, Rentickle might come across several challenges. Firstly, the rental companies had to make huge investment on storage and maintenance of the products they offered on rent. Also, these companies had to spend on delivery of the product rented by the customer and pick-up of the same after use by the customer. Last but not the least, these rental companies had to deal with damages and loss of products. Against this backdrop, would it be possible for Rentickle to offer superior quality products on rent and motivate people to rent instead of purchase furniture and home appliances? What could be the challenges that Rentickle was likely to face in its journey ahead?
Location:
Other setting(s):
2018

About

Abstract

On December 4th 2017, Rentickle, an online furniture and home appliances rental company based in Gurugram, India, had announced that it had raised USD4 million (in a combination of equity and debt, in the ratio 9:11) in a fresh funding round. The basic objective behind raising this fresh capital was to utilise it for the company's geographical expansion, expansion of its product portfolio (inclusion of baby products, fitness products, etc), and also to stimulate internal growth. Rentickle offered products on rent from its platform on 3, 6, 9 and 12-month subscription basis. As of December 2017, the company had around 10,000 loyal customers across the four cities where it operated, namely, Gurgaon, Delhi, Noida and Hyderabad. Rentickle targeted young professionals who were away from their homes, newly married couples, and expatriates who came to India for a short time span. However, despite rising demand for products on rent, Rentickle might come across several challenges. Firstly, the rental companies had to make huge investment on storage and maintenance of the products they offered on rent. Also, these companies had to spend on delivery of the product rented by the customer and pick-up of the same after use by the customer. Last but not the least, these rental companies had to deal with damages and loss of products. Against this backdrop, would it be possible for Rentickle to offer superior quality products on rent and motivate people to rent instead of purchase furniture and home appliances? What could be the challenges that Rentickle was likely to face in its journey ahead?

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Location:
Other setting(s):
2018

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