Furniture subscription company Furlenco has raised Rs 1,000 crore as part of its latest funding round led by Zinnia Global Fund. The funding has been raised as a mix of debt and equity that will allow the company to cater to a larger audience.
Furniture subscription company Furlenco has raised Rs 1,000 crore as part of its latest funding round led by Zinnia Global Fund. The funding has been raised as a mix of debt and equity that will allow the company to cater to a larger audience. With the latest investment, Zinnia Global Fund along with CE-Ventures and Lightbox Ventures have become the company’s investors. The latest round of funding is aligned with Furlenco’s plan to expand in Tier 2 and Tier 3 cities in India. In 2019, CE-Ventures led a Series C funding round of USD 17.5 million.
Recently, the company announced that it is entering Jaipur, Mysuru, and Ahmedabad. As of now, the company provides furniture subscriptions in 13 cities including Mumbai, Bengaluru, Pune, Delhi, Gurgaon, Noida, Ghaziabad, Faridabad, Hyderabad, and Chennai among others.
In a press note, Furlenco stated that between FY15 and FY20, the company has grown at a CAGR of 120 per cent. It further claimed it was able to preserve 95 per cent of its revenue for FY21 despite the outbreak of Covid-19 pandemic. In the next five years, Furlenco is projecting its annual revenue growth to Rs 2,200 crore and generate Rs 650 crore in free cash on an annual basis by FY26. It is to note that the current valuation of the rental furniture and appliance industry stands at around Rs 33,500 crore and is pegged to grow at a CAGR of 11 per cent between 2021-2025, data by 2020 Redseer Report suggested.
Ajith Mohan Karimpana, Founder and CEO of Furlenco said, “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.”
According to Ritesh Abbi, Zinnia Global Fund, Furlenco is “poised for continued strong growth” which resulted in the latest Series C investment.
Furlenco has been offering furniture packages to consumers in India for their living room furniture, beds, dining tables, study solutions, workstations, and loungers among others. With products, the company also offers added services, for delivery, assembly, and set up. Furlenco also offers many appliances like microwave ovens, LED televisions, laptops washing machines.