Online Furniture Startup Furlenco rases $140 million led by Zinnia Global Fund & Others
Furlenco, a furniture subscription service, has raised $140 million (Rs 1,000 crore) in a mix of debt ( Rs 850 crore) and equity (Rs 150 crore) as part of its latest funding round led by Zinnia Global Fund.
This round was also attended by existing investors Lightbox Ventures, CE-Ventures, and angel investor Saket Burman.
Furlenco, which primarily rents out furniture and home décor, raised $20 million earlier this year from venture debt firm BlackSoil Capital. It raised around $10 million in debt and equity from Lightbox last year.
According to Ajith Mohan Karimpana, CEO of Furlenco, the funding will help the company expand its geographic reach, launch new products and plans, and support marketing. “A large part of the fundraise is long-term structured debt whereas the remaining is equity capital,” said Karimpana.
Furlenco, which saw flat growth in fiscal 2021 with revenue of Rs 100 crore, is now aiming to grow the business to Rs 2,300-2,500 crore over the next five years, according to him.
“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 said.
"We are 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, Zinnia Global Fund.
Furlenco, which was founded in 2012, now has customers in 13 cities: Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, Ahmedabad, and Jaipur. Furlenco announced that it will now expand to more Tier I and Tier II cities.
According to Karimpana, the pandemic has created new opportunities for companies like Furlenco, as the rental market has changed dramatically.
Lifestyles have evolved, and so have the needs of urban Indians in terms of how they decorate their homes, he claims. “However, the furniture industry still has work to do in terms of providing the right kind of solutions.”
Tushar Singhvi, deputy-CEO of existing investor CE-Ventures, said: “Capitalising 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 growth path, in its product innovation and through its sustainability efforts.”
According to the 2020 Redseer Report, the rental furniture and appliance industry was worth around Rs 33,500 crore ($4.6 billion) in 2020 and was expected to grow at an 11 percent compounded annual rate between 2021 and 2025.
Furlenco provides furniture packages in a variety of categories. Apart from furniture, it also sells appliances such as laptops, microwave ovens, LED televisions, and washing machines, and it has recently expanded its services to include the rental of two-wheelers, gaming consoles, and entertainment and fitness equipment. It is in competition with companies like Pepperfry, Fabrento, Cityfurnish, RentoMojo, and GrabOnRent.
This round was also attended by existing investors Lightbox Ventures, CE-Ventures, and angel investor Saket Burman.
Furlenco, which primarily rents out furniture and home décor, raised $20 million earlier this year from venture debt firm BlackSoil Capital. It raised around $10 million in debt and equity from Lightbox last year.
According to Ajith Mohan Karimpana, CEO of Furlenco, the funding will help the company expand its geographic reach, launch new products and plans, and support marketing. “A large part of the fundraise is long-term structured debt whereas the remaining is equity capital,” said Karimpana.
Furlenco, which saw flat growth in fiscal 2021 with revenue of Rs 100 crore, is now aiming to grow the business to Rs 2,300-2,500 crore over the next five years, according to him.
“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 said.
"We are 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, Zinnia Global Fund.
Furlenco, which was founded in 2012, now has customers in 13 cities: Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, Ahmedabad, and Jaipur. Furlenco announced that it will now expand to more Tier I and Tier II cities.
According to Karimpana, the pandemic has created new opportunities for companies like Furlenco, as the rental market has changed dramatically.
Lifestyles have evolved, and so have the needs of urban Indians in terms of how they decorate their homes, he claims. “However, the furniture industry still has work to do in terms of providing the right kind of solutions.”
Tushar Singhvi, deputy-CEO of existing investor CE-Ventures, said: “Capitalising 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 growth path, in its product innovation and through its sustainability efforts.”
According to the 2020 Redseer Report, the rental furniture and appliance industry was worth around Rs 33,500 crore ($4.6 billion) in 2020 and was expected to grow at an 11 percent compounded annual rate between 2021 and 2025.
Furlenco provides furniture packages in a variety of categories. Apart from furniture, it also sells appliances such as laptops, microwave ovens, LED televisions, and washing machines, and it has recently expanded its services to include the rental of two-wheelers, gaming consoles, and entertainment and fitness equipment. It is in competition with companies like Pepperfry, Fabrento, Cityfurnish, RentoMojo, and GrabOnRent.
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