An interview with Ms. Sarika Shetty, CEO & Co-founder of RentenPe
In an insightful interview with Ms. Sarika Shetty, CEO and Co-founder of RentenPe, we explore the innovative journey of the company in bridging the credit gap in India.
By formalizing rent payments, RentenPe is transforming the financial ecosystem, empowering tenants and landlords alike, and fostering greater financial inclusion.
What inspired the creation of RentenPe and the concept of India’s first Rent Credit Score? How do you see it transforming the rental and financial landscape in India?
Sarika Shetty: RentenPe was born out of a personal experience. I was working as the head of a luxury auto dealership in Mumbai and living on rent.
But while I had a stable income and paid rent and EMIs on time, my application for a home loan was rejected, citing ‘overexposure to credit’.
That made me realise that regular rent payment was nothing more than an expense, and it was not even counted in the credit ecosystem.
I initiated a study with Ernst & Young – Parthenon, conducting surveys on financial institutions, landlords, tenants and brokers.
It showed that if a structured score was available, banks were open to including rental data as one of the parameters in credit decisions. Landlords also agreed that knowing about a tenant’s rent payment behaviour would be of value.
Similarly, tenants realised that it was unfair to exclude rent from credit evolution. That is when I decided to launch RentenPe.
Our unique offering Rent Credit Score (R Score™) utilises rent payment to build creditworthiness. The Residence Card (R Card™) stores a tenant’s profile details and rent payment history.
Utilising rent payments as part of the credit system is in keeping with global developments such as former Canadian Prime Minister Justin Trudeau supporting rent as a credit factor and even India’s Model Tenancy Act of 2021 which accentuates the formalisation of rent practises.
Through our R Score™ and R Card™, we are working to transform the rental and financial landscape of India.
Can you elaborate on how RentenPe’s Rent Credit Score is calculated and what factors are considered in the scoring algorithm?
Sarika Shetty: The Rent Credit Score (R Score™) is India’s first Rent Credit Score. We generate the R Score ™ of a tenant by using an advanced algorithm which is based on various rental parameters.
When a tenant pays rent through the RentenPe app timely and consistently, completes KYC, uploads other details and stays engaged on the app, it builds and improve his/her R Score™.
How does RentenPe support tenants in their journey from renting to homeownership? What are the key milestones along this path?
Sarika Shetty: As tenants continue building their R Score™, it unlocks a series of benefits for them including access to short-term rental loans for rent or security deposit payment.
Once tenants increase their R Score™ from the base score of 650 to the highest score of 790, they get access to pre-approved home loan, completing their journey from tenants to home owners.
The R Score™ can be increased through various factors such as timely and consistent rent payment for 12 consecutive monthss, uploading details such as income, work details like company name, education, family, etc. and staying engaged on the app.
How does the app ensure seamless onboarding and verification for both tenants and landlords? What challenges have you faced in this process?
Sarika Shetty: At RentenPe, ensuring seamless onboarding and verification for both tenants and landlords is critical — especially in a market where rental agreements vary drastically.
India lacks a standardized rental contract format — tenants may present notarized documents, e-stamp agreements, or even handwritten contracts on white paper, depending on the region. This fragmentation poses a real challenge for digital verification.
To overcome this, we’ve built a robust hybrid onboarding model. While our platform supports digital uploads and OCR-based validation of rent agreements, we also deploy field teams for physical verification wherever documents lack legal clarity or formatting consistency. This ensures trust, authenticity, and a secure foundation for Rent Credit Score generation.
Challenges faced include inconsistent document formats, low digital literacy among tenants in Tier 2/3 cities, and limited awareness about the legal value of rental agreements. However, our on-ground presence and process adaptability have helped bridge these gaps effectively.
RentenPe has recently expanded to several metro cities. What strategies did you use to drive adoption in new markets, and what have been the key learnings from these expansions?
Sarika Shetty: Through an EY-Parthenon report that we commissioned, we found out that the majority of India’s rental housing activity is concentrated in seven cities — Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Delhi NCR and Kolkata. The report highlighted that nearly 60% of Bengaluru’s population lives on rent, 48% in Hyderabad and 27% in Mumbai.
All over India, the ratio is approximately 35%. While we were initially present only in Mumbai, Pune and Bengaluru, last month we expanded our services pan India to make renting a smart and rewarding experience for tenants and landlords alike.
To drive adoption, we have partnered with apps like Mygate to make rent payment a smart and seamless process for renters from across the country.
We also engage with channel partners to drive app downloads, facilitate rent payments and expand our channel partner network apart from promoting our services such as the 1% Rent Club for landlords. We are also driving adoption through effective use of performance marketing and social media.
What are the next major features or services RentenPe plans to introduce to further empower tenants and landlords?
Sarika Shetty: We are getting into various partnerships which will empower both tenants and landlords.
Our partnership with Eqaro Guarantees to lower risks for landlords and reduce rental stress for tenants. For landlords, it covers outstanding rent, utility bills, damages, etc.
We are also giving scratch cards on every successful rent payment. This is a part of our loyalty programme.
Furthermore, if tenants refer the app and people use their referral code to download, it helps tenants earn rewards.
Landlords can subscribe to our 1% Rent Club for complete visibility into a tenant’s profile and make informed decisions and identify the right tenant.
How does RentenPe differentiate itself from traditional rental platforms and emerging prop-tech startups in India?
Sarika Shetty: Most proptech companies are in the property-listing business. They assist a tenant in finding a property. In traditional rent platforms, renters can explore properties which they want to rent and directly rent a property.
RentenPe, on the other hand, comes into play once the rent agreement is made. We take care of the relationship building in this journey. Our Residence Card (R Card™) stores rent payment history, KYC and other details of the tenant.
Simply by showing the landlord an R Card™ with a high R Score™, you can earn the trust of landlords.
A high R Score ™ unlocks access to short-term rental loans and also eventually pre-approved home loans as banks and financial institutions are considering the R Score™ as an additional parameter in the credit ambit.
Landlords can opt for services under our 1% Rent Club where for a small amount, they can get complete visibility into the tenant’s profile by getting their KYC, court record, hometown address checked and more.
Simply put, R Card™ is going to be the rental passport of the future – giving both tenants and landlords complete peace of mind.
Ms. Sarika Shetty’s vision for RentenPe highlights the importance of integrating rent payments into the formal financial system.
As the company continues to grow, it not only addresses the credit gap but also paves the way for a more inclusive financial landscape in India, benefiting countless individuals and families.
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