Furlenco - Quality Products Have No Fear Of Time

Purbalee Dutta Purbalee Dutta
May 9, 2022 9 min read
Furlenco - Quality Products Have No Fear Of Time

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Furlenco.

Human activities need furniture. For example, for sleeping, we need a bed; for our food intake, we need a dining table and so on. However, our stays and their duration vary with time and place. Therefore, buying furniture, which is expensive too, definitely is not the solution. However, we can always rent them just like any other items! Β 

Movable furniture dominates the space today. What has truly transformed for the furniture space with the emergence of the internet and the spread of eCommerce websites and apps is the shopping for our home and office furniture, which has now taken the online route.

Be it antique or be it modern, furniture is central to our lives today. However, transportation was really an issue because furniture is bulky, and transporting them without a mess is hard, if not impossible. To straighten up all such issues, online furniture companies were born.

Furlenco is one such online furniture rental platform. Living and desiring better is easier now with Furlenco. Award-winning furniture is available here as well. Read the Furlenco success story here, and know more about the Furlenco company, Furlenco Founders, Owners, Furlenco Competitors, Furlenco's Business Model, Revenue, Logo, Funding and more.

Furlenco - Company Highlights

Startup Name Furlenco
Headquarters Bangalore, Karnataka, India
Sector Furniture Rental, Home Decor
Founder Ajith Mohan Karimpana
Founded 2012
Parent Organization Kieraya Furnishing Solutions Private Limited
Website furlenco.com

Furlenco - About
Furlenco - Startup Story
Furlenco - Founder and Team
Furlenco - Logo
Furlenco - Business Model
Furlenco - Revenue Model
Furlenco - Funding and Investors
Furlenco - Growth
Furlenco - Challenges
Furlenco - Competitors
Furlenco - Future Plans

Furlenco - About

Furlenco is an online furniture company, which is driven by a different set of ideas, thereby enabling people to start living better than today. Furlenco makes living better by giving consumers home decor and award-winning furniture on rent. All the furniture of Furlenco is designed by experts. Designs are inspired by the urban living citizens of India. The lifestyle and the requirements both are changing every day. That is why new designs are coming.

Furlenco - Startup Story

In the year 2010, Ajith Mohan Karimpana came back to Bengaluru, Karnataka, India from New Jersey, USA. When he used to stay in the USA, he wanted to sell his furniture there. After selling he got 10% back of what he paid for it. He bought the furniture around 2 years ago. That was the time when he found the pain of both buying and selling furniture. From that day he was determined. He wanted to provide everyone with beautiful furniture. He made this idea his life's mission. Because everybody desires beautiful things at a cheaper price. This way Furlenco was born.


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Furlenco - Founder and Team

Ajith Mohan Karimpana, Founder and CEO of Furlenco
Ajith Mohan Karimpana, Founder and CEO of Furlenco

Ajith Mohan Karimpana is the CEO and the founder of Furlenco. He began his career as a Senior Consultant at Morgan Stanley. After that, he joined Goldman Sachs. There he worked for 5 years and 10 months as a Senior Analyst and Vice President. He completed his schooling at Kendriya Vidyalaya. He pursued a B.Tech degree in Industrial Engineering from the National Institute of Technology, Jalandhar.

Ashwin Venkatraman is the Chief Operating Officer at Furlenco. He began his career as an Industry and Development Manager at Google. He was also the Director and the Product Head at InMobi.

Furlenco Logo
Furlenco Logo

Furlenco - Business Model

The business model of Furlenco is very simple. The company provides furniture, home appliances and home decor on rent to its consumers. It enables people to lease tables, chairs, beds, couches etc on a monthly basis. People usually after losing a high value by selling furniture need furniture again. Furlenco is established for such kinds. The company brings the furniture to the customer's doorstep.


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Furlenco - Revenue Model

The revenue of the company is generated from the rental income. From decorations to home appliances all are recognized on the basis of the terms of the contract of hiring. Delivery charges are also included in the list. The company is providing a 10% discount on rent for the first 6 months. The offer is only valid when there is an order worth Rs. 1250 per month or above. This offer is only for the existing customers of Furlenco. It is not applicable to all. For the month of August 2020, the company is having a few deals in its backpack.

  • On orders of above Rs 1249 and above Rs 500 off is available for 3 months.
  • On orders above Rs 1249, Rs 300 off is available for 3 months.
  • On orders above Rs 999 and above per month a discount of flat Rs 1600 is available for 4 months.

Furlenco - Funding and Investors

Furlenco has raised an amount of over $240 million so far. Furlenco is funded by 16 investors, as per the latest records.

Date Transaction Name Money Raised Lead Investor
July 5, 2021 Series D Round $140 million Zinnia Global Fund
January 2021 Debt Round Rs 44 crore Black Soil Capital and Crescent Enterprises Limited
April 2, 2020 Debt and Equity Financing Round $10 million Lightbox and Saket Burman
February 11, 2020 Series C Rs. 160 million Chowdry Associates
August 23, 2019 Debt Financing Rs. 70 million Chowdry Associates
July 1, 2019 Debt Financing Rs. 20 million -
March 1, 2019 Series C $5.8 million -
January 1, 2019 Venture Round - InnoVen Capital
September 17, 2018 Series C - -
September 1, 2018 Debt Financing Rs. 80 million Trifecta Capital Advisors
February 25, 2018 Venture Round Rs. 50 million -
February 7, 2018 Debt Financing $1.5 million

Furlenco - Growth

Furlenco reported a revenue of Rs 64 crore in the year FY19, which was only a revenue of Rs 40 crore in FY2018. The company has recently posted a revenue of Rs 84.3 crore in FY21, which is a slight decrease of around 6.3% from Rs 90 crore revenue it pulled out in FY20.

Revenue Breakdown

Renting furniture, home decor items and more stood for the larger part of the Furlenco operations. A small amount of Furlenco revenue was also derived from the disposal of its demolished tangible assets and its interest on fixed deposits. The total revenue of Furlenco is Rs 88 crore during FY21, which was Rs 92.5 crore in FY20.

Revenue Verticals FY21 FY20
Operating Revenue INR 84.30 cr INR 90 cr
Other Income INR 3.70 cr INR 2.50 cr

Expenses Breakdown

The employee benefit expenses stood as the largest cost centre for the Furlenco company, which contributed to 20.8% of its revenue. The other major chunk of expenses that Furenco bore during FY21 were plant and machinery, warehouses, office premises, and more that the company has taken on lease, which amounted to 15.5% of its total expenses. Here's the full breakdown of the Furlenco expenses:

Expenses Verticals FY21 FY20
Employee Benefits INR 36.50 cr INR 39.70 cr
Contracts and Labour Charges INR 7.91 cr INR 12.10 cr
Legal and Professional Charges INR 15.90 cr INR 6.56 cr
Rent and Lease Expenses INR 27.20 cr INR 21.17 cr
Depreciation and Amortisation INR 26.82 cr INR 29.11 cr
Other Operating and Admin Expenses INR 31.67 cr INR 38.91 cr
Finance Cost INR 21.21 cr INR 17.62 cr
Advertising and Promotional Expenses INR 8.32 cr INR 8.83 cr

Furlenco's expenses during FY21 were more than double its operating revenues. The expenses of Furlenco were recorded at Rs 175.53 cr in FY21, which was registered at Rs 174 cr in FY20. This made Furlenco's loss rise which rose by 7.4% from Rs 81.53 cr in FY20 to become Rs 87.57 Β cr in FY21. On a unit level, Furlenco spent Rs 2.08 to earn a single unit of operating revenue. The EBITDA margin also jumped from -37.63% to -44.93%.

Furlenco Financials FY20-FY21

Furlenco - Challenges

Being a player operating in one such industry like furniture rental and home decore, which is experiencing a growth spurt and is seeing a lot of competition lately, Furlenco is always put to test. Scaling its business and making it profitable is a real challenge for Furlenco as of June 2022.

Furlenco Layoffs

Furlenco was in the news on March 26, 2022, as the company laid off around 180-200 employees because of the restructuring process that it was then going through. These layoffs came at the back of the scale-down of the operations of Furlenco, whcih was previously available across numerous metro and non-metro cities like Pune, Kolkata, Ahmedabad and more.

Furlenco Scale Down of Operations

The online furniture rental company has temporarily suspended operations in Kolkata and other cities including Mysore, Chandigarh, and Jaipur. Β  Β  Β 

Furlenco - Competitors

The top competitors of the company are RentoMojo, Rentickle and GrabOnRent.

  • RentoMojo is the #1 competitor of Furlenco. It is a rental platform that provided appliances, electronics, and furniture for rent. It was founded in 2014 and is headquartered in Bengaluru.
  • Rentickle is one of the top rivals of Furlenco. The company offers furniture, appliance, and home furnishing essentials for rent. It was founded in the year 2015.
  • GrabOnRent is the 3rd competitor of Furlenco. It used to provide fitness related equipment, furniture, an air cooler, and a laptop. It was founded in the year 2015. The company had to shut down in 2020.

Furlenco - Future Plans

The goal of the company is to elevate the standards of urban living consumers. The company has launched its operations in Mumbai because they feel that Mumbaikars are super enthusiastic about the new concepts. Furlenco is aiming towards expanding its business towards the Tier 2 cities soon.

The company witnessed flat growth in the wake of 2021 with revenues touching the Rs 100 crore mark. It is now all set to grow its total revenue between Rs 2,300-2,500 crore over the next five years, he said. In the next 10 years, the company wants to see itself as the "Pioneers" of the sharing economy.

Starting from furniture to vehicles and everything, the company wants to offer its users everything in rent, which is generally seen as a financial burden if bought new.


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FAQs

Who is the founder of Furlenco?

Ajith Mohan Karimpana is the founder and CEO of Furlenco.

Who are the competitors of Furlenco?

RentoMojo, Cityfurnish & Rentickle are some of the competitors of Furlenco.

How does Furlenco work?

Furlenco rents furniture and appliances to its consumers for 3, 6 or 9 months.

Is Furlenco profitable?

Yes, the furniture rental company reported a revenue of 100 crores in 2021.

Can we buy furniture from Furlenco?

Furlenco offers furniture designed in-house. It's present in Pune, Bengaluru, Mumbai, and Delhi NCR. Rentomojo offers both individual products and affordable packages.

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