Subscription-based furniture rental company Furlenco has raised Rs 125 crore ($15 million) in a fresh funding round led by Sheela Foam Limited, with additional investment from Whiteoak and Madhu Kela. The capital infusion marks Sheela Foam’s first follow-on investment since acquiring a 35 percent stake in Furlenco in July 2023 for Rs 300 crore.
The newly raised funds will enable the Bengaluru based company to expand its product portfolio, strengthen omnichannel distribution, and scale operations as it moves toward public-market readiness. Furlenco confirmed that it is preparing for a potential IPO in the coming years, supported by improving business fundamentals and operational efficiencies.
Founded in 2012 by Ajith Mohan Karimpana, Furlenco operates a subscription-led furniture and lifestyle rental model, offering customers rental, purchase, and refurbished furniture options. Over the years, it has raised multiple rounds of equity and debt from investors including Sheela Foam, Lightbox Ventures, Crescent Ventures, and Eagles.
Furlenco claims to have over 1.5 lakh active subscribers and has furnished more than 10 lakh homes across India since launch. The company has also broadened its offering across furniture, appliances, and home lifestyle products to increase customer lifetime value.
According to startup data platform TheKredible, Furlenco has raised $313 million to date, with Sheela Foam and Lightbox Ventures among its largest shareholders. As of the most recent round, founder and CEO Ajith Mohan Karimpana holds 12 percent ownership in the company.
Notably, Furlenco turned profitable in FY25, recording Rs 240 crore in revenue and a profit of Rs 3 crore, compared to a loss of Rs 139 crore in FY24. Improved capital allocation, higher customer retention, and the strength of its subscription model contributed to the turnaround.
With the latest capital injection and a path to profitability established, Furlenco is positioning itself to scale aggressively and prepare for a public listing in the near future.
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