Furlenco raises Rs 125 Cr from Sheela Foam and others

Subscription-based furniture rental firm Furlenco has raised Rs 125 crore ($15 million) in a new funding round from Sheela Foam Limited, with additional participation from Whiteoak and Madhu Kela. 

This marks Sheela Foam’s (the parent company of Sleepwell) first investment in Furlenco since acquiring a 35% stake in the company in July 2023, a deal that involved a cash outlay of Rs 300 crore.

The new funds will be used to expand its product portfolio, strengthen omnichannel operations, and prepare the business for public-market readiness through broader distribution and operational scale.

According to Furlenco, it is also preparing for a potential IPO in the coming years as part of its long-term strategy. 

Founded in 2012, the company operates a subscription-led furniture business and has raised multiple rounds of equity and debt from investors including Sheela Foam, Lightbox Ventures, Crescent Ventures, and Eagles.

Furlenco claims to have more than 1.5 lakh active subscribers and has furnished over 10 lakh homes across India since launch. The company offers rental, purchase, and refurbished furniture options.

According to startup data intelligence platform TheKredible, Furlenco has raised a total of $313 million in funding to date, with Sheela Foamand Lightbox Ventures as its lead investors. As of the last funding round, Furlenco’s founder and chief executive, Ajith Mohan Karimpana owned 12% of the company.

Furlenco became profitable in FY25. As per TheKredible,  the company recorded Rs 240 crore in revenue and Rs 3 crore in profit for FY25, compared to a loss of Rs 139 crore in FY24. Its subscription model and capital allocation contributed to the shift.