Furniture rental startup Furlenco has raised $15 Mn from TradeCred. According to the startup, House of Kieraya, an umbrella brand that houses both Furlenco and Furbicle has entered into an asset financing deal with TradeCred. House of Kieraya was formed last month to offer rental furniture, appliances and remanufactured furniture under one roof.
The latest investment comes almost two months after it raised $140 Mn in its Series D round. The investment round was largely made up of venture debt with a minor equity portion. The round was led by Zinnia Global Fund, CE-Ventures and Lightbox Ventures. The investment was to help Furlenco expand its operations in India and explore international market expansion, including the Middle East.
Founded in 2015 by Ajith Mohan Karimpana, Furlenco at present operates in Bengaluru, Delhi/NCR, Hyderabad, Chennai, Mumbai, Pune, Chennai, Mysore, Ahmedabad and others. Karimpana last year had said that the startup was already operationally profitable and targeted to become fully profitable in the next 12-18 months. The startup also boasts of offering 72 hours delivery, free relocation, free cleaning, among others. The startup has now furnished more than 170K homes.
Earlier in 2021 Furlenco also raised INR 20 Cr debt financing round from Blacksoil Capital. Prior to that, the online furniture rental startup bagged another debt round worth INR 53 Cr from Rangoli Resorts, Beeline Impex, Aditya Burman, and Crescent Enterprises. Bollywood actor Amir Khan had in 2017 invested INR 2 Cr in Furlenco. It raised $30 Mn in Series B round which was led by LightBox Ventures and others.
The fresh investment further comes on the heels of Furlenco launching UNLMTD, an annual subscription service that the startup claims to offer customers all the furniture and appliances at one price. As per the startup, UNLMTD offers two annual subscription plans. The premium subscription is priced at INR 4999 per month for 15 products and the Lite person that is priced at INR 3999 will cover 9 products.
Furlenco locks its horns with another Bengaluru-based startup Rentomojo. It further competes against the likes of Gurugram-based Rentickle. Apart from startups, Furlenco is also facing the heat from Sweden-based furniture retailer IKEA, which made its entry in India in 2018. As per Redseer report, India’s online furniture market is growing at 80-85% and is dominated by metro and Tier 1 cities.