Furlenco, a Bangalore-based startup that operates a furniture and equipment rental company of the same name, announced today that it has raised $ 140 million in a financing round to scale its operations in the South Asian market and explore international market expansion.
The new $ 140 million round of funding, a Series D, includes $ 120 million in bonds and residual capital, the seven-year-old Indian startup told Biomedarticles. The new funding round was led by the Zinnia Global Fund. CE Ventures and Lightbox Ventures also took part in this round, which, according to the data insights platform Tracxn, is increasing current borrowing and equity capital to over $ 240 million.
Furlenco, which operates in more than a dozen Indian cities, offers its customers the option of renting a range of furniture. In recent quarters, it has expanded to other categories including fitness equipment, home appliances, electronic products, and two-wheelers.
A queen-size bed on the platform, for example, starts at just $ 9 a month, while a laptop can be rented for just $ 40 a month. The startup has attracted customers, among other things, because of its three-day delivery commitment and thorough cleaning of items at no additional cost. It also has a partnership with NoBroker, a General Atlantic-backed Indian startup that helps clients avoid brokers looking for new homes.
Expanding into newer categories helped the startup recover in the fiscal year that ended in March of this year and maintain 95% of its sales, it said. Lightbox Ventures said Furlenco may consider expanding into the Middle East and other international markets.
The startup, which competes with Rentomojo, said it will use the fresh capital to fuel its growth and also invest in design and also work on generating annual sales of $ 300 million over the next five years.
“The lifestyle has evolved and with it the needs of urban Indians when it comes to furnishing their home. However, the furniture industry has some catching up to do when it comes to the right solutions. We know that there is immense strength and innovation in the B2C commerce space and in the sectors in which we operate. We are exploiting this potential and will definitely change the market with our plans, ”said Ajith Mohan Karimpana, founder and CEO founder of Furlenco, in a statement.
Like many others, rental platforms experienced a sharp slump in the past year when the coronavirus hit the country. But the market it is targeting remains a great opportunity. The rental furniture and appliance industries are currently valued at over $ 4.5 billion, according to industry estimates.
“We are excited to partner with Furlenco, who are rapidly transforming furniture subscription services for India’s lifestyle aspirants. As an industry leader with a strong management team, Furlenco is poised for continued strong growth, ”said Ritesh Abbi, Zinnia Global Fund.