>10 Mn tonnes of furniture waste are produced in the EU every year & 90% is burned or goes to the landfills; only <10% is recycled. Hence, the economy based on buying and selling is outdated - we are leapfrogging a recycling secondary market with our circular business model. We call it: furnishing-as-a-rental-solution.
My Cofounder Vamsi and I are two passionate entrepreneurs that have set out to solving this hard problem. Vamsi has grown a similar business in India before, called rentomojo.com from 8 to 200 employees. In India, Rentomojo which is backed by Accel and Bain Capital, rents consumer products (incl. furniture, appliances and electronics) to end customers (B2C model).
Here in Europe, we believe that a B2B platform is the more fruitful go-to-market-strategy. Hence, we are allowing businesses to become asset-light by not having to buy products but subscribe to our rental solution.
We are currently focused on the living space, allowing Coliving provider (and micro-apartment or asset manager) to rent the required furnishing products so that they can offer their flats furnished without having to use their equity to buy furniture etc. Therefore, we turn their CapEx into pure OpEx - allowing them to grow much faster.
We, on the other hand, are purchasing the products directly from the manufacturer in larger volumes. The capital required for buying the products (or assets) comes from our credit investors. Investors that provide credit invest on our assets and generate a return in form of an interest rate.
We are, in the end, an asset management company. Consumer products being our assets.
Like a real estate asset manager who leverages their real estate deals with credit and earns back the purchasing price by renting out the flats, we are taking credit to buy our assets (furniture, etc.) and rent these out to our customers. The diversified risk based on our asset categories and customers groups is allowing us to rate the risk for credit investors.
Our product rental platform will be heavily tech enabled based on the past experience of Co-founder Vamsi Krishna and his experience as product and tech expert. more