Furniture rental startup Furlenco raises Rs 125 crore from Sheela Foam, others

Furniture rental startup Furlenco has raised Rs 125 crore in a funding round led by existing investor Sheela Foam, with participation from Whiteoak and Madhu Kela.

Sheela Foam, which owns the Sleepwell brand, had secured its board approval last month to invest up to Rs 30 crore in House of Kieraya, Furlenco’s parent company.

The fresh capital will be used to deepen Furlenco’s presence in existing markets, expand into new cities, and invest in product innovation, technology and customer experience.

Founded in 2012, the Bengaluru-based startup runs a subscription-driven furniture and appliance rental platform across more than 28 cities, including Bengaluru, Mumbai, Delhi NCR, Chennai and Kolkata. It offers over 300 SKUs and also sells new and refurbished furniture. Rentals account for about 70 percent of its revenue, appliances contribute about 25 percent and new furniture around 5%.

Founder Ajith Mohan Karimpana said the company now has a clear path to profitability and scale and that the new round strengthens its position as it works towards building a public-market ready business. Furlenco is aiming for an IPO after FY27.

Furlenco claims to became profitable in FY25 after reporting a net profit of Rs 3.1 crore compared to a loss of Rs 130.2 crore in FY24. Revenue rose 64% to Rs 228.7 crore in FY25, up from Rs 139.6 crore in the previous year.

The startup is targeting revenue of Rs 370 crore and profit of Rs 37 crore in the ongoing financial year. It is banking on its Furlenco Kids vertical and growth among premium customers and aims to reach about Rs 100 crore in profit before filing its IPO.