Furlenco parent House of Kieraya posts Rs 3 Cr profit in FY25 on leaner operations

House of Kieraya Ltd, the parent company of furniture and lifestyle brands Furlenco and UNLMTD, has reported a sharp turnaround in FY2024–25, swinging to a profit of Rs 3.1 crore, after a loss of Rs 130.2 crore in the previous year.

Revenue from operations rose 64% year-on-year to Rs 228.7 crore, led primarily by a surge in service income, which grew 61% to Rs 208 crore. Product sales more than doubled to Rs 20.8 crore, indicating that the company’s efforts to expand its product and subscription offerings are beginning to pay off.

Total income, including other income of Rs 11.3 crore, stood at Rs 240 crore, compared with Rs 151.9 crore in the previous year.

Lean operations drive profitability

The company managed to return to profitability even as it invested heavily in new assets. Total expenses for the year fell 16% to Rs 236.9 crore, from Rs 282.1 crore last year, largely due to lower employee costs and a reduction in finance expenses.

Employee benefit expenses dropped 36% to Rs 30.7 crore, while finance costs declined 42% to Rs 18.6 crore, suggesting improved debt management and operational efficiencies. Depreciation rose to Rs 44.6 crore from Rs 34.9 crore, reflecting the company’s growing asset base and continued investment in leased furniture and technology platforms.

The company’s total assets nearly doubled to Rs 461.2 crore as of March 31, 2025, from Rs 285.6 crore a year earlier. Property, plant, and equipment rose sharply to Rs 325.9 crore from Rs 173.1 crore, indicating higher investments in rental inventory and infrastructure.

Cash and cash equivalents stood at Rs 29 crore at the end of March 2025, compared with Rs 32.7 crore a year earlier.

Operational turnaround

The Bengaluru-based company showed improvement in cash generation, reporting a positive operating cash flow of Rs 50.8 crore, compared with a negative Rs 75.1 crore in the previous year.

In 2023, Sleepwell-maker Sheela Foam Ltd acquired a 35% stake in Furlenco’s parent company, House of Kieraya Pvt. Ltd, for about Rs 300 crore. The deal brought together a traditional manufacturing heavyweight with a new-age digital rental platform.

In October 2024, Sheela Foam deepened its bet on the segment, approving an additional 10.5% stake purchase for Rs 107 crore.

Following this deal, Furlenco began retooling its business model to align with changing market realities. Originally built as a pure furniture rental platform, it has since evolved into a hybrid model combining rentals, outright sales, and offline retail stores.

The company now allows customers to not only rent but also purchase furniture, responding to demand from users who wanted to retain items after long-term rentals. It has also embraced a circular-economy approach, refurbishing furniture multiple times to reduce waste and capital costs. This asset-light model helps extend product lifecycles and improve margins.

At the same time, Furlenco is also pursuing offline expansion, launching flagship stores, such as its 5,500 sq ft outlet in Bengaluru. It is also extending its reach beyond metros into Tier II and III cities.