Furniture rental firm Furlenco has raised Rs 1,000 crore in a mix of debt and equity as part of its latest funding round led by Zinnia Global Fund. Existing investors CE-Ventures and Lightbox Ventures also participated in this round.
"With this new fundraise, 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," Furlenco said in a statement.
Founded in 2015, the company claims to have grown at a compounded annual growth rate (CAGR) of 120 percent between 2015-2020 despite the pandemic, and the company was able to preserve 95 percent of its revenue in FY 2021.
"The business is now looking at scaling its annual revenue to Rs 2,200 crore in the next five years, generating Rs 650 crore in free cash annually, by FY 2026," the statement said.
Furlenco recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more Tier I and Tier II cities.
With this business expansion, Furlenco has presence in 13 cities, including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurugram, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysuru, and Ahmedabad.
Furlenco Founder and 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.
"We are excited to lead the way in transforming how people access furniture and we want to keep innovating in this space. The funds we have raised will play a critical role in this journey and fuel our growth with investments and design.
"We know there is immense strength and scope for 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," Karimpana said.
According to the 2020 Redseer Report, the rental furniture and appliance industry currently stands at around Rs 33,500 crore and is expected to grow at a CAGR of 11 percent between 2021-25.
"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," Zinnia Global Fund CEO Ritesh Abbi said.
Furlenco offers furniture packages across all key categories such as living room furniture, beds, dining tables, study solutions, workstations, loungers etc. It also offers 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.
Edited by Megha Reddy