Rentickle, provider of trendy lifestyle products on rental basis to temporary migrants in Delhi-NCR, Hyderabad and Bengaluru, plans to add new product categories and expand to Mumbai and Pune this year.
“The company had received USD 250,000 as equity in 2016 and another USD 400,000 as a combination of debt and equity in 2017 in Series A funding, spurring its pan-India expansion plans. It is soon going to set up warehouses in Mumbai and Pune,” said, Vineet Chawla, Founder, Rentickle.
Chawla said a major chunk of his company’s clients are young professionals unsure about tenure of their stay at a place and those with transferable jobs (60%), followed by newly-wed couples with limited budget (15-20%) and expatriates visiting India for a few months. “Our rents vary from as low as INR 100 per month to around INR 1,200 per month depending on the tenure and product sought on rent,” he said. These rentals are just 2 to 3% of the product’s costs to the customer who no longer needs to buy or maintain a product.
In this sharing economy that allows consumers to enjoy rented luxury lifestyle products, a popular concept in the West, the company’s customers are mainly those trying to avoid the whole rigmarole of scouting and buying new furniture and appliances, bargaining for prices, handling logistics, delivery, labour, installation and then selling these products when they move out to another place, all expensive propositions. He said Rentickle not only delivers rented products at their home but also installs these free of cost with complimentary periodic maintenance provided by the company, thus ensuring value for their money.
“Renting home appliances accounts for nearly 35% of revenue coming from the 21–30 year old age-bracket while 27% comes from the 31–40 year old age-group,” Chawla said. Companies setting up temporary offices in other cities are also amongst its clients.
Rentickle has so far serviced nearly 10,000 B2B and B2C clients. Apart from young professionals who find renting convenient and practical, other consumer segments include students away from home for higher studies. On the B2B segment also, some hotel chains are increasingly opting for renting to furnish their hotel rooms instead of spending huge capital upfront for outright purchase.
There has been a major shift in consumer mindsets from owning to renting of lifestyle products. While sharing economy has been made popular by large global companies like Uber, airbnb etc, the rented products categories has expanded to garments, accessories, high-end motorcycles and even DSLR cameras.