Subscription-based furniture rental company Furlenco has raised $140 million in a mix of debt and equity round led by Zinnia Global Fund. Existing backers CE-Ventures and Lightbox Ventures also participated in the Series D round.
While Furlenco has been raising debt rounds at regular intervals, its last equity funding came in November 2019 when CE-Ventures had led a $17.5 million round in the Bengaluru-based company.
The fresh proceeds will help it to cater to much larger audiences and launch in more Tier I and Tier II cities, said the company in a press release.
With this, Furlenco has raised around $240 million across equity and debt rounds to date. In January 2021, the Amir Khan-backed company had picked up Rs 44 crore in debt round from Black Soil Capital and Crescent Enterprises Limited.
According to the company, it was able to preserve 95% of its revenue in FY21 and it is looking at scaling its annual revenue to $300 million in the next 5 years.
For the financial year ending on March 31, 2020, or FY20, Furlenco managed to increase its revenue from operations by nearly 42.60% to Rs 90 crore from 63.08 crore in FY19. During the year, the company’s total expenditure went up by around 20% from Rs 144.7 crore in FY19 to Rs 174 crore in FY20.
Furlenco spent Rs 1.93 to earn a single rupee of revenue during FY20, improving by 16% as compared to Rs 2.3 spent to earn the same in FY19.
While the company’s revenue surged by over 42%, annual losses remained somewhat stable and stood at Rs 81.53 crore in FY20. Importantly, EBITDA Margins improved from -71.86% in FY19 to -37.63% in FY20.
The six-year-old company provides furniture and home decor on rent along with relocation services. The company operates in 13 cities, including Bengaluru, Mumbai, Pune, Hyderabad, Delhi NCR, Chennai, Mysore and Ahmedabad.
Besides furniture and home appliances, Furlenco has also expanded its services to renting two-wheelers, gaming consoles, entertainment and fitness equipment as well.
Founded by former Goldman Sachs and Morgan Stanley executive Ajith Mohan Karimpana, Furlenco directly competes with Rentomojo and Rentickle.
Furlenco did not disclose its valuation in this round, however, it is expected to be the most valued company in this space. Bengaluru-based Rentomojo had crossed the $100 million valuation mark in May 2020 and hasn’t raised funds since then.