Overview
An established and profitable IT equipment leasing company is seeking ₹3 crore in growth capital in exchange for 10% equity to expand its asset portfolio and meet increasing market demand. Established in 2010, the company operates from a fully furnished 2,000 sq. ft. office and a 2,000 sq. ft. warehouse, with a monthly rental of ₹1.2 lakh. The company specializes in IT equipment leasing and rental services on a recurring monthly subscription model, providing businesses with cost-effective access to technology infrastructure. It has built a strong customer base of 150 active clients, with nearly 90% client retention, reflecting long-term relationships and recurring revenue. The business generates an annual turnover of approximately ₹17 crore with an impressive 40% EBITDA margin, supported by a skilled workforce of 45 employees. The company owns IT assets valued at approximately ₹20 crore, providing a strong balance sheet. The proposed investment will be utilized to acquire additional IT equipment, enabling the company to expand its rental inventory, serve more enterprise clients, and accelerate sustainable revenue growth.
Business Details
Proposed Deal Structure
The company is seeking a total investment of ₹20 crore in debt funding, at an indicative interest rate of 12% per annum, along with an equity investment in exchange for approximately 10% equity ownership in the company.
Competition / Market
India’s IT equipment rental and leasing market is expanding as businesses increasingly prefer flexible, asset-light technology solutions over large upfront capital expenditure. Demand is driven by digitisation, hybrid workforces, project-based deployments, startups, events, and rapid technology refresh cycles. The market remains fragmented, with competition from traditional rental companies, regional players, and resellers. The company stays ahead through its nationwide presence, growing asset base, rapid deployment capabilities, strong customer relationships, and efficient asset utilisation and redeployment. Its asset-backed recurring-revenue model, combined with expansion into managed IT services,AMC, and refurbished equipment, creates differentiation, customer stickiness, and multiple growth opportunities.
Products & Services
The company provides comprehensive IT equipment rental and leasing solutions to businesses across India. Its portfolio includes laptops, desktops, workstations, servers, monitors, networking equipment, printers, and other technology hardware. Services include short- and long-term rentals, project-based deployments, device configuration, installation, maintenance, technical support, equipment replacement, and IT asset lifecycle management. The company enables enterprises, startups, and project-based organisations to access reliable technology without significant upfront capital expenditure. Its flexible, asset-backed business model helps customers scale their IT infrastructure efficiently while reducing procurement, ownership, maintenance, and technology obsolescence costs.
Growth Potential
The company has significant growth potential as Indian businesses increasingly adopt flexible, asset-light technology models and outsource IT infrastructure requirements. Expansion into new geographies, enterprise accounts, managed IT services, device management, AMC, and refurbished equipment sales can substantially increase revenue per customer and lifetime value. The company can further scale through a larger asset base, improved utilisation, technology-enabled asset tracking, and strategic financing partnerships. Growing demand from enterprises, startups, GCCs, project-based workforces, and digital transformation initiatives provides a large addressable market.
Financial Details
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