Furniture rental startup Furlenco sees revenue rise to Rs 64 Cr in FY19
Kieraya Furnishing Solutions Private Limited, the parent company of online furniture rental company Furlenco, reported revenue of Rs 64 crore in FY19, up 58 percent from Rs 40 crore in FY18.
The Bengaluru-based company also reported a loss of Rs 80.03 crore in the financial year 2019. This is a rise from the Rs 64 crore loss the company reported in FY18, according to filings with the Registrar of Companies (RoC).
The company derives its revenue primarily from the rental income from furnishings and home appliances which are recognised on a straight-line basis over the term of the contract for hire. Delivery charges have accrued on delivery of goods to the customers, while damage waiver and other charges are accrued upon closure or cancellation of the contract.
As per the ROC filings, the company’s loss can be attributed to the employee benefit expense which was reported to be at Rs 33 crore in the FY19, which was about Rs 26 crore in the financial year 2018.
Earlier in a conversation with YourStory, Furlenco Founder and CEO Ajith Mohan Karimpana, said,
“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."
In March 2019, the company had raised over $5.84 million (Rs 40.46 crore) in a Series C funding round from Lightbox Ventures, Crescent Enterprises, and others. It had also announced that it is set to raise $50 million in Series D funding in the coming fiscal.
Founded by Ajith in 2011, Furlenco offers furniture for homes on a subscription-basis in Bengaluru, Delhi-NCR, Hyderabad, Chennai, Mumbai, and Pune. It competes with Rentomojo, GrabOnRent, Guaranted, CityFurnish, Rentickle, Voko, and RentSher, among others.
(Edited by Suman Singh)