Bengaluru-based online furniture rental company Furlenco has raised $30 Mn (INR 200 Cr) in a Series B round. The deal is a mix of equity and debt financing.
The equity portion of the investment is led by Lightbox Ventures along with Axis Capital, a Hong Kong-based VC fund and a few prominent HNI’s.
The raised funds will be used to expand into newer categories, product ranges, and more cities. The funding also transforms Furlenco into a fully debt-financed model to fund its assets.
Ajith Mohan Karimpana, founder and CEO of Furlenco said, “This fresh funding, which includes $15 Mn of equity and $15 Mn of debt, is a testament to Furlenco’s strong unit economics and growing operational cash flow. Furlenco’s core differentiation lies in its design philosophy, customer experience, and technology. ”
He further believes that the only way to duplicate that effort in a market like India is by providing a full stack rental model. “We think that access over ownership, is the right model for India,” added Ajith.
Previously known as Rent Ur Duniya, Furlenco was founded in 2012, by Ajith Karimpana. It is the world’s only furniture rental company which designs and manufactures its own furniture with the help of in-house designers. Over the past 18 months, Furlenco has furnished nearly 15,000 homes with products worth over $15 Mn (INR 100 Cr) of market value.
Prior to this, Furlenco raised $6 Mn (INR 37 Cr) from Lightbox in March 2015 and an initial $100K in an angel funding round.
The startup is further aiming to get hold of at least $3 Bn of the total $10 Bn home furnishing/decor market, in the next 3-5 years.
Rentomojo which is founded by IIT Madras graduates, is another startup which is dealing in this space but is following a marketplace approach. Fabfurnish, Pepperfry, LivSpace, Urban Ladder are some other players in the home decor and home furnishing space.