Online furniture rental startup Furlenco has raised $140 million in debt and equity in its latest funding round led by Genia Global Fund. Apart from Xenia, CE Ventures and Lightbox Ventures also participated in this funding round. The company has raised $120 million in debt and $20 million in equity. With this round, Furlenco has raised $200 million to date, most of which is debt funding.
The Bengaluru-based startup will use the money raised to enter new geographies, increase the workforce and expand its portfolio.
Ajit Mohan Karampana, Founder and CEO, Furlenko said, “Until now, Furlenco was utilitarian. Now we are going to add one product daily to our categories so that people will start flocking to Furlenco for their home decor needs. “We want to be Netflix in the furniture world,” he said.
Furlenco is presently present in 13 cities in the country and by the end of this year, it will be serving in 15 cities including smaller ones. The company is also eyeing international expansion and is looking to expand to Dubai and Singapore by next year. With the current revenue of around Rs 100 crore, the business is planned to grow to Rs 2,200 crore annually over the next five years.
The company works on a subscription-based revenue model. So that helped it generate cash from existing customers even during the lockdown. “This is also one of the reasons for attracting large debt funding as our revenue stream continues to be steady,” Karampana said. The company has furnished more than 1,50,000 houses to date.
Furlenco offers furniture in various categories which include furniture for the living room, bedroom, dining table, study, and office. As part of its value-added services, the company also offers the customers to replace the furniture with new models.