Subscription-based online rental furniture platform Furlenco has raised Rs 53 crore in fresh debt financing from four investors.
Furlenco has allotted 41,00,000 OCDs of Rs 100 each to raise Rs 41 crore from Rangoli Resorts, Beeline Impex and Aditya Burman, regulatory filings show. The Bengaluru-based firm has also allotted 12,00,000 CCDs to Crescent Enterprises to raise Rs 12 crore. Rangoli Resorts and Aditya Burman have invested Rs 15 crore each whereas Beeline Impex has put in Rs 11 crore.
Importantly, the board also passed a separate resolution to allow the allotment of 17,00,000 Series D1 CCPS at a price band of Rs 230-280 per share to raise around Rs 39.1-47.6 crore in equity funding.
Founded by former Goldman Sachs and Morgan Stanley executive Ajith Mohan Karimpana, the eight-year-old firm has raised an estimated $43 million in equity and around $50 million in debt funding till now.
Besides furniture, Furlenco covers home decor and home appliances on rent under its subscription model and also provides relocation service in case of moving to a new house. Until April 2020, the firm had served around 110,000 customers and is present in eight cities including Bengaluru, Mumbai, Pune, Hyderabad, Delhi NCR and Chennai.
During its $10 million round in April, Karimpana had claimed that Furlenco was operationally profitable and was aiming to become fully profitable in the next 12-18 months. While Furlenco’s annual financial report for FY20 is yet to be filed, it’s revenue in FY19 increased by 58% to Rs 64 crore from Rs 40 crore in FY18. The company’s net losses stood at Rs 64 crore at the end of FY19.
Furlenco directly competes with Rentomojo and Rentickle. One of the early players in subscription-based furniture rental space, Rentomojo has raised over $35 million from the likes of Accel, Chiratae Ventures and Bain Capital. The Geetansh Damania-led firm had crossed $100 million valuation mark in May and scooped up Rs 22 crore from its existing backers in the following month.