Online leasing platform, RentoMojo has become the first startup in India to lend phones on a rental basis at almost 60 percent of their market value. Bengaluru-based fintech startup, RentoMojo announced that its customers would now get to own a phone for a particular subscription period by paying rental monthly installments (RMIs) which would be 60 per cent of the total market price of the handset. The company has tied up with major smartphone brands such as Apple, Samsung, Vivo, Oppo, Xiaomi, Nokia among others for its subscription services. With the smartphone market in India growing, the number of users is expected to rise to 859 million by 2023. The average price of a premium smartphone is `35,000 and one out of five Indians want to upgrade to the latest model of smartphone every year which makes phone leasing a lucrative segment.
“The sales of smartphones will continue to rise as it is no longer a lifestyle choice, but an essential, integrating a number of vital facilities, including banking, shopping, payments, booking, among others. People are hence unwilling to compromise on devices and latest technology, to ensure safety and hassle-free user experience. RentoMojo’s mobile upgrade proposition, makes this possible at about half the cost of traditional buying. We have seen the sales of premium smartphones booming over the last three years and this year, a lot of people will be looking at changing their phones, making this the best time to launch RentoMojo’s upgrade feature” Geetansh Bamania, Founder & CEO, RentoMojo, said.
At the end of the subscription period, the user has to return the handset or upgrade to the latest model or switch to the other brand. RentoMojo claims that the users would end up paying 60 per cent or 80 per cent of the total mobile phone price during the 12 or 18 months subscription period respectively. According to RentoMojo estimates, the online leasing business market in India is valued at $10 billion.