Furlenco Raises $140M to Expand Furniture & Appliance Rentals in India

Furlenco Secures $140 Million to Expand Rental Services

Furlenco, a furniture and appliance rental service based in Bangalore, has announced a $140 million financing round. This capital injection will be utilized to broaden the company’s operations within the South Asian market and investigate potential expansion into international territories.

Series D Funding Details

The $140 million in new funding represents a Series D round, comprised of $120 million in debt and the remainder in equity. Furlenco, established seven years ago, disclosed this information to TechCrunch.

Zinnia Global Fund spearheaded the financing round. Additional participation came from CE-Ventures and Lightbox Ventures, bringing the startup’s total funding – encompassing both debt and equity – to over $240 million, as reported by Tracxn.

Expanding Product Categories

Currently operating in over a dozen cities across India, Furlenco provides customers with rental access to a diverse selection of furniture.

In recent periods, the company has broadened its offerings to include fitness equipment, household appliances, electronic devices, and even two-wheeler vehicles.

Competitive Pricing and Customer Benefits

Rental costs are notably affordable; for example, a queen-size bed can be rented starting at $9 per month. Laptops are available for as little as $40 monthly.

Furlenco attracts customers through its commitment to three-day delivery and complimentary deep cleaning of all rented items. A strategic partnership with NoBroker, an Indian startup backed by General Atlantic that simplifies apartment hunting, further enhances its appeal.

Revenue Recovery and Future Growth

The company reported that its expansion into new product categories enabled it to maintain 95% of its revenue during the financial year ending in March. Lightbox Ventures suggests that Furlenco may consider extending its services to the Middle East and other international markets.

Furlenco, a competitor to Rentomojo, intends to use the newly acquired funds to accelerate growth and invest in product design. The company aims to achieve an annual revenue of $300 million within the next five years.

Founder's Vision

Ajith Mohan Karimpana, founder and CEO of Furlenco, stated: “Urban Indian lifestyles are evolving, and so are their home furnishing needs. The furniture industry needs to adapt to provide appropriate solutions.”

He continued, “We recognize the significant potential for innovation within the B2C commerce sector and the industries we serve. We are poised to disrupt the market with our planned initiatives.”

Market Opportunity

While rental platforms experienced a downturn last year due to the coronavirus pandemic, the overall market remains substantial. Industry estimates value the rental furniture and appliance market at over $4.5 billion.

Ritesh Abbi of Zinnia Global Fund expressed enthusiasm, stating: “We are excited to collaborate with Furlenco, a company rapidly transforming furniture subscription services for India’s aspiring consumers. With a strong management team and industry leadership, Furlenco is well-positioned for continued expansion.”