New Delhi, Dec. 3 -- Furlenco, a homegrown furniture rental brand, has secured Rs 125 crore (around $13.9 million) in a new funding round led by existing shareholder Sheela Foam Ltd, with participation from White Oak Capital and well-known stock market investor Madhusudan Kela.
The company plans to use the capital to strengthen its presence in existing markets and enter new high-potential markets across India. It also plans to invest in product innovation, technology, customer experience, and its supply chain, while expanding both its offline stores and omnichannel reach to serve a larger base of urban consumers.
"This fundraiser will help us deepen our presence in existing markets, strengthen our footprint and bring our offerings closer to more customers. With a clear path to profitability and scale, this round sets us up strongly for the coming years, as we work towards building a long-term, public-market-ready business," said Ajith Mohan Karimpana, founder and chief executive officer of Furlenco.
Founded in 2012, Furlenco offers rental, purchase, and refurbished furniture solutions designed to combine style, quality, and sustainability, catering to both renters and homeowners. It has built a subscription-led business. It operates in cities like Bengaluru, Delhi/NCR, Hyderabad, Chennai, Mumbai and Pune, among others.
The company turned profitable in the financial year through March 2025, reporting Rs 240 crore in revenue and Rs 3 crore in net profit, a significant turnaround from a Rs 139 crore loss in FY24. It claims that it now serves over 1.5 lakh active subscribers and has furnished more than 10 lakh homes across India.
The company has raised multiple rounds of equity and debt from investors such as Sheela Foam Ltd, Lightbox Ventures, and Crescent Ventures. Sheela Foam picked up a stake of about 35% in July 2023 for Rs 300 crore. The Mumbai-listed mattress maker invested at a valuation that was likely lower than the level at which Furlenco raised Series D funding from Zinnia Global Fund in 2021.
Last year, Sheela Foam invested another Rs 107 crore to increase its stake in Furlenco. The company held a 43.89% stake in Furlenco on a fully diluted basis at the end of March 2025, according to its annual report. It didn't say whether its shareholding would change after the latest round of investment.
Published by HT Digital Content Services with permission from VC Circle.