India-based, furniture subscription startup, Furlenco raises $140 million in series D led by Zinnia Global Fund

Furlenco, a furniture subscription startup, has raised $140 million (Rs 1,000 crore) in series D round in a mix of debt and equity as a share of its latest funding round led by Zinnia Global Fund, the founder said on July 5, 2021. Current investors Lightbox Ventures, CE-Ventures and angel investor Saket Burman were also witnessed in this round.

Furlenco primarily provides furniture packages. It also offers laptops, microwave ovens, LED televisions, washing machines and has lately expanded its services to hiring two-wheelers, gaming consoles, entertainment and fitness gear. Its a competitor to firms such as Pepperfry, Fabrento, Cityfurnish, RentoMojo and GrabOnRent.

The rental furniture and appliance market is worth nearly $4.6 billion (INR 33,500 Cr). As 43% of the metropolitan population across the top 20 cities contribute to over half of the entire market. The industry is suspected of growing at a compound annual growth rate of 11% by 2025, according to the 2020 Redseer Report.

Company’s Profile

Founded in 2012, Furlenco assists customers in 13 cities: Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, Ahmedabad and Jaipur. Furlenco said it would soon expand to even more Tier-I and Tier-II cities.

The pandemic has channelled new opportunities for the startup, with the rental market has seen a massive shift. Lifestyles have evolved and so have the requirements of the urban Indian when it comes to how they do up their home, he said. “However, the furniture enterprise has some catching up to do in rendering the right kind of solutions.”, said Ajith Mohan Karimpana, founder and CEO, Furlenco.

Purpose of Investment

With this new fund-raise, the startup said it would cater to wider audiences with more tailored solutions and unique contributions, expand to more cities and strengthen its subscriber base. As a rental company, it intends to boost its revenue by creating new assets, which it designs and then supplies to its 15+ vendors for contract completion.

He said Furlenco saw flat growth in fiscal 2021 with an income of UD$ 134 Million (INR 100 Cr), is now looking to grow the company over the next five years. “We intend to generate $90 million (INR 650 Cr) in loose cash yearly by FY26. A great part of our future revenues will come from subscription settings. We aim to be the Netflix of the online furniture rental business”.

What the CEO have to say

Karimpana, founder and CEO, Furlenco, said, “One of the main reasons why we went for this venture is the balance of a subscription enterprise, unlike any other conventional consumer-facing startup. We toppled in the second wave, but we again brought off well in June. Our kind of industry is reliant on long-term, low-cot debt to increase our asset base”.

“…The funds we have raised will execute a critical role in this mission and fuel our growth with investments and plans. We know there is tremendous strength and scope of innovation in the B2C commerce space and the areas we operate in,” he added.

What the Investors have to say

Ritesh Abbi, Zinnia Global Fund, said, “We are eager to partner with Furlenco, which is swiftly transforming furniture subscription settings for India’s lifestyle competitors. As an industry administrator with a solid management team, Furlenco is poised for continued steady growth”.

Tushar Singhvi, deputy-CEO of existing investor CE-Ventures, said, “Capitalising on the huge potential of the home store and the possibilities of expansion to the Middle East region and beyond, we continue to promote the startup along its growth path, in its product innovation and through its sustainability endeavours.”

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