Furniture Subscription Company Furlenco Raises $140 Mn Funding
The company will cater to much larger audiences with more tailored solutions and brand new offerings, while continuing to focus on sustainability at the very core of the business
Furniture subscription company Furlenco on Monday announced that it has raised $140 million in a mix of debt and equity, as part of its latest funding round led by Zinnia Global Fund.
With this, Zinnia Global Fund joins the list of the company's investors along with CE-Ventures and Lightbox Ventures, who also participated in this round. ICBC and DPNC acted as advisors on the transaction.
"Lifestyles have evolved and so have the needs of the urban Indian when it comes to how they do up their home. However, the furniture industry has some catching up to do in providing the right kind of solutions. We are excited to lead the way in transforming how people access furniture and we want to keep innovating in this space. The funds we have raised will play a critical role in this journey and fuel our growth with investments and design. We know there is immense strength and scope of innovation in the B2C commerce space and the sectors we operate in. We are tapping into that potential and will definitely disrupt the market with what we are planning," said Ajith Mohan Karimpana, founder and chief executive officer, Furlenco.
With this new fundraise, the company will cater to much larger audiences with more tailored solutions and brand new offerings, while continuing to focus on sustainability at the very core of the business.
"We are excited to partner with Furlenco, which is rapidly transforming Furniture subscription services for India's lifestyle aspirants. As an industry leader with a strong management team, Furlenco is poised for continued strong growth," noted Ritesh Abbi, Zinnia Global Fund.
"Furlenco's award-winning furniture offerings represent an answer to the rapid pace of urbanization in India. Capitalizing on the massive potential of the home market and the prospects of expansion to the Middle East region and beyond, we continue to support the company along its steady and promising growth path, in its product innovation and through its sustainability efforts," commented Tushar Singhvi, deputy chief executive officer and head of investments, CE-Ventures, which successfully led Furlenco's Series C funding round of $17.5 million and joined its board of directors in 2019.
Having grown at a CAGR of 120 per cent between FY15-20, despite the pandemic, Furlenco was able to preserve 95 per cent of its revenue in FY21. The business is now looking at scaling its annual revenue to $300 million in the next 5 years, generating $90 million in free cash annually, by FY26.
"We are very excited to support Furlenco as they continue to harness the power of the circular economy. No matter what the challenge in front of them, Furlenco has always balanced their economic ambitions with their sustainability goals. With this raise, the company will step closer to closed-loop operations, and we hope their example helps to pave the way for other companies to embrace business models in which nothing becomes waste," added Sid Talwar, Lightbox Ventures.
As a part of its expansion efforts, Furlenco has recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more tier-I and tier-II cities. With this, Furlenco is now available in 13 cities, including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, and Ahmedabad.
According to the 2020 Redseer Report, the rental furniture and appliance industry currently stands at around $4.6 billion, and is expected to grow at a CAGR of 11 per cent between 2021-25.