Furniture subscription company Furlenco has raised $140 million (Rs 1,000 crore) in a mix of debt and equity, as part of its latest funding round led by Zinnia Global Fund, its founder said. Founder Ajith Mohan Karimpana mentioned that the funding will help Furlenco, which offers furniture on rent, expand its geographic reach, launch new products and plans, and support marketing.
A large part of the fundraise is long-term structured debt whereas the remaining is equity capital Karimpana further elaborated. Furlenco, this online furniture startup saw flat growth in fiscal 2021 with revenue of Rs 100 crore, is now looking to grow the business to Rs 2,300-2,500 crore over next five years, he said.
The new financing round was led by Zinnia Global Fund. CE-Ventures and Lightbox Ventures also participated in this round, which brings its to-date debt and equity raise to over $240 million. Rent platforms saw a major dip last year when the pandemic hit the country. But the market it’s going after remains a big opportunity. According to industry experts, the rental furniture and appliance industry is currently worth over $4.5 billion.