Furlenco’s FY22 Loss Widens 71% YoY To INR 149 Cr, Operating Revenue Up 1.5X

Bengaluru-based furniture rental startup Furlenco reported a 71% increase in its standalone net loss to INR 148.68 Cr in the financial year 2021-22 (FY22) from INR 86.92 Cr in the previous fiscal year as growth in its business led to a rise in its expenses as well.

The startup, which earns revenue through rental income from furnishings and home appliances, posted a 1.5X growth in operating revenue to INR 128.85 Cr from INR 84.31 Cr in FY21, according to the filings of its parent company House Of Kieraya Private Limited with the Ministry of Corporate Affairs.

It earned INR 9.54 Cr through sale of furniture and office equipment in FY22. The startup didn’t earn any revenue from sales of furniture and office equipment in FY21. Meanwhile, revenue from leasing services rose to INR 119.31 Cr from INR 84.31 Cr in FY21.

Total revenue, including other income, grew 1.6X to INR 137.22 Cr from INR 88.31 Cr in FY21.

In line with the growth in revenue, Furlenco’s expenses surged 1.6X to INR 285.9 Cr from INR 175.23 Cr in FY21.

 

Employee benefit expenses rose 1.3X to INR 48.41 Cr during the year under review from INR 36.51 Cr in FY21. Other expenses, including rental cost, legal professional charges, advertising and promotional expenses, rose 1.9X to INR 171.43 Cr in FY22 from INR 90.68 Cr in the previous year.

Furlenco’s advertising and promotional expenses ballooned a steep 3.4 X to INR 28.87 Cr from INR 8.33 Cr in FY21.

On a consolidated basis, the startup’s net loss widened to INR 151.47 Cr in FY22 from INR 87.58 Cr in FY21. Consolidated revenue increased to INR 136.62 Cr from INR 87.97 Cr.

Furlenco, founded in 2012 by Ajith Mohan Karimpana, operates an online subscription-based furniture rental platform. It currently operates in Bengaluru, Delhi NCR, Hyderabad, Chennai, Mumbai, and Pune. It competes with the likes of RentoMojo and NoBroker’s furniture segment.

The startup has raised total funding of $228.6 Mn so far from investors such as Lighbox, Zinnia Global Funding, CE-Ventures, among others.

In March 2022, Furlenco laid off around 180 employees to cut costs. These layoffs were in line with the startup’s plans to attain profitability ahead of it going public.

As per reports, Sheela Foam Ltd, the maker of the Sleepwell brand of mattresses, is in advanced talks to acquire Furlenco to expand into newer business categories.