Mumbai: Furniture subscription company Furlenco has raised $140 million (Rs 1,000 crore) in a mix of debt and equity, as part of its latest funding round led by Zinnia Global Fund, its founder said.
The funding will help the company expand its geographic reach, launch new products and plans, and support marketing, Ajith Mohan Karimpana told B2B. "A large part of the fundraising is long-term structured debt, while the rest is equity capital," said Karimpana, who is also the chief executive of the online furniture startup.
Furlenco, which saw steady growth in fiscal 2021 with revenue of Rs 100 crore, said it is now looking to grow the business to Rs 2,300-2,500 crore over the next five years.
"Our goal is to generate Rs 650 crore ($90 million) in free cash annually by FY26. A large part of our future revenue will come from subscription services. Our goal is to be the Netflix of the furniture rental market” he said.
Founded in 2012, Furlenco currently serves customers in 13 cities: Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, Ahmedabad, and Jaipur. Furlenko said that it will now expand to more Tier 1 and Tier 2 cities.
According to Karimpana, the pandemic has thrown open new opportunities for companies like Furlenco, with the rental market has undergone a massive change. He said lifestyles have evolved and so have the needs of urban Indians when it comes to how they make their homes. "However, the furniture industry has to catch up to offer the right kind of solution."
Tushar Singhvi, deputy-CEO of existing investor CE-Ventures, said: “Capitalising on the massive potential of the home market and the prospects for expansion in the Middle East region and beyond, we continue to support the company on its growth path, in its innovation, and through its sustainability efforts.”
According to the 2020 Redseer report, the rental furniture and home appliance industry was valued at around Rs 33,500 crore ($4.6 billion) and was expected to grow at a compounded annual rate of 11% between 2021 and 2025.
Furlenco offers furniture packages across categories. In addition to furniture, it also offers home appliances such as laptops, microwaves, LED televisions, and washing machines, and has recently expanded its services to include two-wheel rentals, game consoles, entertainment, and fitness equipment. Compete with companies like Pepperfry, Fabrento, Cityfurnish, RentoMojo, and GrabOnRent.
Source: Economics Times
Also Read: 7 costly mistakes young earners make with their finances, investments