Online furniture and appliance rental firm Furlenco raises $140 Mn to fuel international expansion.
A host of Indian start-ups have raised capital through funds during the golden year of the Indian start-up ecosystem, with more than a dozen evolving into unicorns. This time, it is Furlenco which raised $140 million in a mix of debt and equity as part of its Series D funding round led by Zinna Global Fund. CE-Ventures and Lightbox Ventures also participated in this round, which brings Furlenco’s to-date debt and equity raise to over $240 million.
Out of the $140 million, $120 million consisted of debt and the rest in equity, as the Bengaluru-based start-up aims to ramp up its operations and expand into international markets by launching new products and plans, and supporting marketing. The eight-year-old Furlenco aims to cater to much larger audiences with more tailored solutions and brand new offerings while continuing to focus on sustainability at the very core of the business.
Operating in more than a dozen Indian cities – including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, and Chennai – (it recently entered Jaipur, Mysore, and Ahmedabad, and is now looking to launch in more Tier 1 and Tier 2 cities), the start-up is an online-only platform offering furniture packages across all key categories, such as living room furniture, beds, dining tables, study solutions, workstations, loungers and more. It gives its customers the ability to swap their furniture when they want to try a new look or when their needs change. It offers not just furniture but items from other categories as well, including fitness equipment, appliances, electronic products, as well as two-wheeler vehicles.
The start-up promises 72-hour free delivery, assembly, and set up, something that has attracted a lot of customers. Customers can also have their furniture relocated for free and can also have it deep cleaned at no extra cost.
Furlenco, which grew at a Compound annual growth rate (CAGR) of 120% between FY15-20, was able to preserve 95% of its annual revenue in FY21. It now aims to increase it to $300 million in the next 5 years.
In a statement, Furlenco founder and CEO Ajith Mohan Karimpana said that as lifestyles evolved, so did the needs of the urban Indian when it came to how they did up their home. “However, the furniture industry has some catching up to do in providing the right kind of solutions. We know there is immense strength and scope of innovation in the B2C commerce space and the sectors we operate in. We are tapping into that potential and will definitely disrupt the market with what we are planning.”
“We aim to generate Rs 650 crore ($90 million) in free cash annually by FY26. A large part of our future revenues will come from subscription services. We aim to be the Netflix of the online furniture rental market,” he added. According to reports, the Indian rental furniture and appliance market currently stands at around $4.6 billion and is slated to grow at a CAGR of 11% by 2025.
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