Furlenco Raises INR 20 Cr Venture Debt From BlackSoil Capital
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The non-banking financial company (NBFC) BlackSoil Capital announced on Thursday that it has invested INR 20 crore into Bengaluru-based furniture subscription platform Furlenco as a venture debt facility.
Founded in 2012 by Ajith Mohan Karimpana, the company operates as a furniture subscription platform. The company claims to have furnished over 150,000 homes across eight major cities in India and has assets under management (AUM) worth more than INR 200 crore, to date.
“Furlenco is offering an alternative solution that delivers high value to the customers while providing the much-needed flexibility. Subscription model proved to be robust during the COVID period and it is our pleasure to partner with Furlenco to help them achieve the next level of growth,” stated Ankur Bansal, co-founder, BlackSoil Group.
The furniture rental company maintains that it offers great quality furniture that is exclusively designed in-house.
The furniture is delivered free of cost at one’s doorstep within 72 hours and comes with benefits like annual cleaning, the option to swap furniture, and free relocation. In a world where people are increasingly choosing not to own, Furlenco gives today’s design-conscious Indians the flexibility to have the best in class products, without the hassle of owning them, said the statement released.
“We have built a very strong lender ecosystem over the years - be it venture debt, NBFCs, or family offices. Our subscription business model, high-quality revenue yielding assets, and consistent operating profitability are key factors that make Furlenco an attractive debt proposition for the lenders,” shared Vaibhav Laddha, head of corporate finance, Furlenco.
The sector-agnostic alternative credit platform BlackSoil’s past deals include OYO, Spinny, Purplle, Zetwerks, Vogo, and TVF, amongst others, and has also recently raised INR 126 crore in the first close for its maiden secured credit fund.
“The year 2021 will see a new phase of growth for Furlenco. We have a lot of exciting initiatives planned for this year that will unravel over the next six to nine months. We are delighted to have BlackSoil as our latest partner. BlackSoil has quickly emerged as a prominent venture debt player helping startups across the board in their growth journey,” added Ajith Karimpana, founder and chief executive officer, Furlenco.
Furlenco has raised close to $51 million in equity funding from investors like Lightbox Ventures, Crescent Ventures, Deepika Padukone and Burman Family Office and $45 million in debt funding from its strong network of investors and various financial institutions.