Bengaluru-based online furniture rental platform Furlenco is set to raise $50 million in Series D funding in the coming fiscal. It closed Series C funding with more than Rs 40 crore (around $5.8 million) in its fourth and final tranche (Series C4) on Friday.
Furlenco Founder and CEO Ajith Karimpana has told YourStory that this $5.8 million closes off the $17.3 million raised in Series C funding over the last year.
“Furlenco has seen tremendous growth over the years, and we are set to become the first furniture rental company to hit Rs 100 crore in revenue. We have positive unit economics and will be profitable soon,” he added.
The latest round has seen participation from Hong Kong-based millionaire Romnesh Lamba, Garware business tycoon Monika Garware, and Director of Dabur Saket Burman (via Chowdhry Associates). Another new entrant is Innovative Quest, which owns Featherlite office furniture.
Existing investors Crescent Enterprises, Lightbox India, and Cognizant co-founder Lakshmi Narayanan has also invested, along with the promoters. The company is also backed by angel investor Rekha Hrishikesh Mafatlal and actor Aamir Khan.
The online rental industry has seen massive growth in India in the last few years, with furniture and electronic appliances leading the way. Ajith says, “The mindset is changing among urban population now, and they are accepting renting as a way of life. Our average monthly ticket size is Rs 3,000. Our customers stay for 20 months or more. So our LTV is Rs.60,000 which is the highest in the industry.”
Founded in 2011, Furlenco has raised $36.5 million in equity funding and over $30 million in debt financing. It competes with Rentomojo, GrabOnRent, Guaranted, CityFurnish, Rentickle, Voko, and RentSher, among others. Mumbai-based online furniture marketplace Pepperfry also provides rental services. Despite global furniture sellers IKEA being based in Hyderabad in India, Ajith claims that the capital of Telengana is Furlenco’s best market.
Last year, Furlenco ranked ninth in the list of ‘1000 High-Growth Companies in Asia Pacific’ published by Financial Times daily. Furlenco, which designs and manufactures their offerings in-house, now boasts of presence in 40,000 houses across Bengaluru, Delhi-NCR, Mumbai, Pune, Chennai, and Hyderabad. It promises delivery within 72 hours, free deep-cleaning, and free re-location service within and to any of the cities they operate in.