Bengaluru, NFAPost: Furlenco, India’s largest furniture subscription company, announced that it has raised Rs 1,000 Cr ($140MM) in a mix of debt and equity, as part of its latest funding round led by Zinnia Global Fund.
With this, Zinnia Global Fund joins the list of the company’s investors along with CE-Ventures and Lightbox Ventures, who also participated in this round. ICBC and DPNC acted as advisors on the transaction.
With this new fundraising, the company will 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. Having grown at a CAGR of 120% between FY15-20, despite the pandemic, Furlenco was able to preserve 95% of its revenue in FY21. The business is now looking at scaling its annual revenue to Rs 2,200 Cr ($300MM) in the next 5 years, generating Rs 650 Cr ($90MM) in free cash annually, by FY26.
As a part of its expansion efforts, Furlenco has recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more Tier 1 and Tier 2 cities. With this, Furlenco is now available in 13 cities, including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, and Ahmedabad.
According to the 2020 Redseer Report, the rental furniture and appliance industry currently stands at around Rs 33,500 crore ($4.6BN), and is expected to grow at a CAGR of 11% between 2021-25.
Furlenco Founder & CEO Ajith Mohan Karimpana said Lifestyles have evolved and so have the needs of the urban Indian when it comes to how they do up their home.
“However, the furniture industry has some catching up to do in providing the right kind of solutions. We are excited to lead the way in transforming how people access furniture and we want to keep innovating in this space,” said Ajith Mohan Karimpana.
Ajith Mohan Karimpana said the funds the company raised will play a critical role in this journey and fuel its growth with investments and design.
“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,” said Ajith Mohan Karimpana.
Zinnia Global Fund’s Ritesh Abbi said the company is excited to partner with Furlenco, which is rapidly transforming Furniture subscription services for India’s lifestyle aspirants. “As an industry leader with a strong management team, Furlenco is poised for continued strong growth” said Ritesh Abbi.
Tushar Singhvi, Deputy CEO & Head of Investments from CE-Ventures, which successfully led Furlenco’s Series C funding round of $17.5 million and joined its board of directors in 2019, commented Furlenco’s award-winning furniture offerings represent an answer to the rapid pace of urbanization in India.
“Capitalizing on the massive potential of the home market and the prospects of expansion to the Middle East region and beyond, we continue to support the company along its steady and promising growth path, in its product innovation and through its sustainability efforts,” said Tushar Singhvi.
Sid Talwar from Lightbox Ventures said the company is very excited to support Furlenco as they continue to harness the power of the circular economy.
“No matter what the challenge in front of them, Furlenco has always balanced their economic ambitions with their sustainability goals. With this raise, the company will step closer to closed-loop operations, and we hope their example helps to pave the way for other companies to embrace business models in which nothing becomes waste,” said Sid Talwar.
Furlenco offers furniture packages across all key categories, such as living room furniture, beds, dining tables, study solutions, workstations, loungers, and much more. As part of its value-added services, its customers have the ability to swap their furniture when they want to try a new look or when their needs change. Furlenco promises 72-hour free delivery, assembly, and set up.
Additionally, customers can have their furniture relocated for free and can also have it deep cleaned at no extra cost. Other than furniture, Furlenco also offers a host of appliances such as laptops, microwave ovens, LED televisions, washing machines, and has recently launched and expanded its services to renting two-wheelers, gaming consoles, entertainment, and fitness equipment as well.
Established in 2015 and headquartered in Bangalore, Furlenco is India’s largest furniture subscription company, catering to the lifestyle aspirations of contemporary urban Indians. It is an online-only platform (www.furlenco.com) that offers high-quality and trendy furniture at affordable monthly rentals.
With value-added services such as 72-hour delivery, free relocation, and free cleaning, the brand solves many of the hassles typically involved with buying and owning furniture. Their furniture is designed by their in-house team of experts and inspired by how millennials and Gen Z live in their homes.
Their offering is targeted at a generation that is non-conventional in nature, believes in experiencing rather than owning and doesn’t feel the need to “settle down in order to live their best life. From a handful of orders in its first year to having furnished more than 170,000 homes, Furlenco has grown from strength to strength as a top player in the rental space. Furlenco currently operates with their services in Bengaluru, Mumbai, Pune, Delhi, NCR Area, Faridabad, Jaipur, Hyderabad, Chennai, Mysore, and Ahmedabad.