Furlenco’s losses cross Rs 150 Cr in FY22, revenue spikes 53%

Subscription-based furniture rental company Furlenco’s revenue from operations surged 53.3% to Rs 129.24 crore in FY22 from Rs 84.31 crore in FY21, according to its consolidated financial statements with the Registrar of Companies.

This comes as the company is eyeing Rs 200 crore and Rs 500 crore in revenues by FY23 and FY24 respectively.

The six-year-old company provides furniture and home decor on rent along with relocation services. Rental income from leasing furnishings and home appliances formed 92.3% of the total operating revenue which grew 41.5% to Rs 119.31 crore in FY22.

The sale of furniture and office equipment brought Rs 9.93 crore to the firm’s coffers during FY22 whereas it also made Rs 7.58 crore in non-operating income in the fiscal year ending March 2022.

Rent-repair and lease expenses accounted for 23.7% of the overall expenditure. This expense surged 2X to Rs 68.15 crore in FY22 from Rs 33.04 crore in FY21. Its employee benefit cost grew by 32.6% to Rs 48.4 crore which also includes Rs 2.7 crore in ESOP expenses which were non-cash in nature.

Furlenco raised sizable debt in its previous years including a $140 million fundraise which had $120 million debt. Consequently, interest costs for the company increased 71.4% to Rs 36 crore.

Advertising cost for Furlenco jumped 3.6X to Rs 30 crore while the company added another Rs 15.1 crore and Rs 12.83 crore against contract labour and transportation cost. In the end, the company’s overall expenditure spiked by 64.1 % to Rs 288.1 crore in FY22.

Outpacing its revenue growth, Furlenco’s losses grew 73% to Rs 151.47 crore during FY22 from Rs 87.58 crore in FY21. On a unit level, it spent Rs 2.23 to earn a single unit of operating revenue.