Rising costs and shorter job tenures are pushing more urban Indians to rent furniture and appliances rather than buy them, and home furnishing rental startups are scaling rapidly.
India’s organised home furnishing rental market grew from Rs 350 crore in 2021 to Rs 1,550 crore in 2025, at 45% CAGR, according to a Redseer report filed with Rentomojo’s draft red herring prospectus. Rentomojo and Furlenco, the two largest players, are both profitable and growing sharply.
Decoding the 45% CAGR
Rentomojo’s revenue rose from Rs 120 crore in FY23 to Rs 266 crore in FY25, with net profit climbing from Rs 4.4 crore to Rs 43 crore, its DRHP shows. The company serves 227,000 subscribers across 22 cities with over 728,000 active rental items as of September 2025. Over 97% of revenue comes from recurring subscriptions, and it expanded from 6 experience stores in FY23 to 67 by September 2025.
Furlenco is on a similar trajectory. “We closed FY26 at about Rs 370 crore in revenue and about 10% PAT,” says Ajith Mohan Karimpana, founder and CEO of House of Kieraya, which operates Furlenco. “FY27 we expect to clock about Rs 500 crore and at least 15% PAT.” The company generates roughly $1 million a month in free cash flow and operates across 36 cities, with plans to reach 40-45 within two years, he adds.
“Whenever there is uncertainty, rent triumphs over buying for sure,” Karimpana says. Rentomojo saw this during COVID, when orders rose as customers “shifted from capex purchases to opex rentals on account of global uncertainties,” Geetansh Bamania, founder and CEO told Financial Express. Despite the current slowdown, Bamania said the category “continues to see strong demand.”
“Society in general has been consistently moving away from ownership, and towards access over ownership. From music CDs to streaming, to homes and furniture, this shift has been clear and consistent,” said Sandeep Murthy, partner at Lightbox Ventures, which has backed Furlenco since 2015. Google keyword data from Lightbox shows ‘buy furniture’ searches declining 10% in 2025 while ‘rent furniture’ queries grew 14% in Furlenco’s operating cities.
Shrinking Tenancies
The growth is underpinned by structural conditions built over years. Average metro tenancy shrank from 1.8 to 1.3 years between CY2021 and CY2025 as job switching accelerated at roughly 22% CAGR, per EPFO data analysed by Redseer. Furnishing a one-bedroom apartment in India costs 8-9 months of average income, against 1-4 months in the US, Japan or South Korea, the report notes.
Both companies almost entirely manufacture and refurbish assets in-house. But they are not immune to cost pressures.
Furlenco is already feeling the pinch. “Foam, our primary input, has seen a 20-30% price increase in the last 1-1.5 months,” Karimpana said. It has revised prices for new customers modestly. “We’ve increased prices slightly A Rs 950 per month sofa now costs Rs 1,000,” he added.
Both are also expanding their range. Furlenco launched a kids’ furniture line. “Kids’ furniture is a classic rental item because kids will outgrow it for sure. We are seeing good traction, growing 100% month on month, albeit from a smaller base,” Karimpana added. Rentomojo launched private label refrigerators and washing machines in FY25 with Dixon Technologies, and its own branded water purifiers, per its DRHP.
Rentomojo’s Rs 150 crore fresh issue will primarily fund debt repayment of Rs 70 crore and lease rentals of Rs 42.5 crore. Furlenco is also eyeing the public markets. “By next year we will be ready for an IPO. The offering will be larger in size. Rental furnishing is at an inflection point. We wish Rentomojo all the success. This will go down as a success for the entire category,” Karimpana added.