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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The online rental company has been fighting a pandemic, a cash crunch and competition. It may be at its wit’s end.
Editor's note: RentoMojo hasn’t been faring well. In a world that has been beaten down by the coronavirus outbreak and in which the economy is as uncertain as the pandemic itself, a general assumption would be that the time is ripe for rental businesses. Professionals reeling from pay cuts and job losses and businesses navigating new consumer preferences may not be willing to bet on real estate, automobiles, expensive furniture or even appliances. Investors should be forming a beeline to gamble on the future of rental companies. That is not the case. For about a year and a half now, Bengaluru-based RentoMojo has been trying to raise money, but outside small tranches and debt capital, it has found funds hard to come by. A big funding round failed to materialize because of the pandemic. Meanwhile, the company has been battling on multiple fronts. There has been a slump in revenue and multiple rounds of layoffs amid a cash crunch. According to two company executives, one former and one current, barring some key functions such as logistics and support, headcounts have been reduced …
The online rental company has been fighting a pandemic, a cash crunch and competition. It may be at its wit’s end.
Editor's note: RentoMojo hasn’t been faring well. In a world that has been beaten down by the coronavirus outbreak and in which the economy is as uncertain as the pandemic itself, a general assumption would be that the time is ripe for rental businesses. Professionals reeling from pay cuts and job losses and businesses navigating new consumer preferences may not be willing to bet on real estate, automobiles, expensive furniture or even appliances. Investors should be forming a beeline to gamble on the future of rental companies. That is not the case. For about a year and a half now, Bengaluru-based RentoMojo has been trying to raise money, but outside small tranches and debt capital, it has found funds hard to come by. A big funding round failed to materialize because of the pandemic. Meanwhile, the company has been battling on multiple fronts. There has been a slump in revenue and multiple rounds of layoffs amid a cash crunch. According to two company executives, one former and one current, barring some key functions such as logistics and support, headcounts have been reduced …
In less than two years, the instant delivery startup that puts quality above all else has attracted marquee VC investors, earning a valuation of $255 million. How far the niche bet will take it is anybody’s guess.
Pricing constraints and uncertain daily-use demand cast doubt on instant help’s ability to replicate quick commerce.
The quick-commerce startup weighs a valuation cut or finding alternative funding to stay afloat as investor appetite for loss-making businesses weakens.
In less than two years, the instant delivery startup that puts quality above all else has attracted marquee VC investors, earning a valuation of $255 million. How far the niche bet will take it is anybody’s guess.
Pricing constraints and uncertain daily-use demand cast doubt on instant help’s ability to replicate quick commerce.
The quick-commerce startup weighs a valuation cut or finding alternative funding to stay afloat as investor appetite for loss-making businesses weakens.
