Bengaluru-based furniture rental startup Furlenco has raised INR 53 Cr in fresh debt financing from Rangoli Resorts, Beeline Impex, Aditya Burman and Crescent Enterprises.
Earlier this year, the startup had raised a $10 Mn funding with participation from its existing investors through a mix of debt and equity financing.
So far, the startup has raised around $43 Mn in equity and $45 Mn in debt. Out of this, the startup claims to have settled $20 Mn worth of debt. Bollywood actor Aamir Khan is also an existing backer of the startup. For this funding round, Waterfield Advisors, DPNC Advisors, and Quadito were the advising partners to Furlenco.
Furlenco was founded in 2012 by Karimpana. The online subscription-based furniture rental platform currently operates in Bengaluru, Delhi/NCR, Hyderabad, Chennai, Mumbai, and Pune. Since inception, the platform has served over 110K customers.
Furlenco’s founder and CEO Ajith Mohan Karimpana had earlier said that the company is already operationally profitable and it aims to become fully profitable in the next 12-18 months.
Acknowledging the impact of the pandemic, he reiterated that, “Furlenco’s subscription business model with monthly recurring revenue allows us to be a lot more resilient than many of the other startups who are seeing their monthly revenues plummet significantly.”
Furlenco claims to further provide additional benefits such as 72-hour ultra-fast and free delivery, setup and pickup. The subscription model allows customers to swap and upgrade packages at will, relocate from one home to another and avail free deep cleaning service for products subscribed through the company.
In FY19, Furlenco had improved the revenue which stood at INR 64.62 Cr. At the same time, its expenses are 2.2X of its revenue reaching INR 144.6 Cr with a loss of INR 80.03 Cr for the year.
Furlenco competes with Urban Ladder, Rentomojo and Pepperfry.