RentSher, a managed rental marketplace, provides an opportunity platform for businesses and individuals to put their owned products on rent and earn. From Baby products, audio visual rentals, apparels, Jewelry, Home and Kitchen products, a wide variety of IT products to medical supplies like wheelchairs and medical beds amongst other products, one can rent for a shorter specific period to longer durations.
The company has, till date, catered to over 60,000 customers and served leading brands like Adobe, Mercedes Benz, LabourNet, Signal2Noise and Zomato as its customers. This rental startup is now looking at raising another round of investments to fuel its future growth aspirations.
Manish Joshi provides excerpts of an interaction with Harsh Dhand, Co-founder and CEO of RentSher who states ‘With RentSher, renting products is as easy as booking a movie ticket’.
NB: What is the size of the equipment rental market in India?
Harsh: According to estimates, the current rental market is approximate $ 6 billion while the new rental market being created can be estimated to be around $9 billion. We can safely assume the over market size to be around $ 15 billion.
NB: Tell us the thought behind RentSher?
Harsh: If we look at a large number of Event Equipment rental offline companies catering and growing in India and rest of the world, there is a clear need. On the other hand – American Event Rental Company, Cort, has got most of them on a single platform and is doing around $ 400 million in terms of business.
We recognized the high demand for renting products for individual need and corporate events and built a platform that provides the same things at a fraction of the cost of actually buying them. RentSher in India and Middle-east is plugging the same gap which is discoverability, transparency and booking ability for Events and Electronics rentals especially focussed on the short term.
We are now present in 2 countries and 5 cities and growing rapidly each day. We have serviced over 60,000 customers and around 1L products have been successfully delivered.
NB: What has been your investment till date?
Harsh: We are a marketplace and all assets belong to vendors and peers. Our investments are limited to Technology and to support operations and marketing. We have invested around INR 3.2 crore into the Indian business and around over INR 1.2 crore in Dubai. The overall revenues have been manifold.
NB: With the availability of easy instalments, the pride of ownership and the high cost of rentals, why not own than rent?
Harsh: Renting is the new buying. Having said that, renting of equipments does not make sense for long-term usage items like appliances and furniture. However, for short term usage, where ownership is not clear like for an office, school, apartment, a startup with less than 2 years lifespan, medical need, events need, rental is much better than buying.
NB: Is the demand from B2B or B2C? Which one contributes higher to your revenue?
Harsh: RentSher has a fairly positive unit economics and overall business revenue strategy. Being a marketplace, it is fairly achievable to scale up the revenues by acquiring more customers and vendors; primarily achieved through word of mouth and marketing.
Between individual and corporate customers, the revenue share is around 40% B2B and 60% individuals (B2C).
NB: What are your current geographical reach and expansion plan?
Harsh: RentSher is perhaps the only seed stage startup which has spanned across and opened operations in UAE. This is achievable due to the net unit economics being positive and a clear focus on short-term event rentals which are big not only in India but in other developing countries.