Subscription-based online rental furniture platform Furlenco has raised another debt round from Black Soil Capital and Crescent Enterprises Limited.
The Bengaluru-based company has allotted 400 convertible debentures of Rs 500,000 each to Black Soil Capital Private Limited to raise Rs 20 crore in debt, regulatory filings show. Additionally, the company has allotted 240,000 compulsory convertible debentures at face value of Rs 100 crore each to raise Rs 24 crore from Crescent Enterprises Limited for a tenure of 3 years.
Post the conversion of debentures, Crescent will control 7.76% in Furlenco.
The fresh debt round comes after two months of raising Rs 53 crore in debt financing from four investors, including Rs 13 crore from Crescent. The eight-year-old firm has raised an estimated $43 million in equity and around $56 million in debt funding till date.
Founded by former Goldman Sachs and Morgan Stanley executive Ajith Mohan Karimpana, Furlenco provides furniture and home decor on rent. Besides, it also provides relocation service in case of moving to a new house and is present in eight cities including Bengaluru, Mumbai, Pune, Hyderabad, Delhi NCR and Chennai.
In April 2020, Karimpana had claimed that Furlenco was operationally profitable and was aiming to become fully profitable in the next 12-18 months. During FY19, the company’s revenue 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. The company is yet to file its annual financial report for FY20.
Backed by the likes of Bollywood star Aamir Khan, Furlenco directly competes with Rentomojo and Rentickle.