Online furniture rental startup Furlenco, which is run by Bengaluru-based Kieraya Furnishing Solutions Pvt Ltd, has raised Rs 1,000 crore ($140 million) in a mix of equity and debt led by Zinnia Global Fund.
The company will utilise the capital to cater to much larger audiences with more tailored solutions and new offerings.
Zinnia Global Fund joined the list of company's investors in this round, which also saw participation from CE-Ventures and Lightbox Ventures.
“We are excited to lead the way in transforming how people access furniture and we want to keep innovating in this space. The funds we have raised will play a critical role in this journey and fuel our growth with investments and design,” said Ajith Mohan Karimpana, CEO of Furlenco.
Furlenco has recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more Tier I and Tier II cities. With this, Furlenco is now available in 13 cities including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurugram, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysuru, and Ahmedabad.
"We are excited to partner with Furlenco, which is rapidly transforming furniture subscription services for India's lifestyle aspirants. As an industry leader with a strong management team, Furlenco is poised for continued strong growth,” said Ritesh Abbi of Zinnia Global Fund.
The brand aims to scale its annual revenue to Rs 2,200 crore in the next five years, generating Rs 650 crore in free cash annually by 2025-26.
The company, which was launched in 2012 by Karimpana, offers furniture packages across all key categories such as living room furniture, beds, dining tables, study solutions, workstations and lounges.
Other than furniture, Furlenco also offers a host of appliances such as laptops, microwave ovens, LED televisions, washing machines, and has recently launched and expanded its services to renting two-wheelers, gaming consoles, entertainment and fitness equipment.
The firm had raised Rs 20 crore in funding from venture debt and alternative credit platform BlackSoil Capital early this year.
In April last year, Furlenco raised $10 million in a mix of equity and debt led by venture capital firm Lightbox.
In September 2018, VCCircle exclusively reported that Furlenco had raised its Series C round of funding led by UAE-based venture capital fund Crescent Enterprises Ventures.
In 2015, Furlenco said it raised $6 million (Rs 38 crore then) in a Series A round from Lightbox alone. In 2016, it raised $15 million (Rs 100 crore) in a Series B round led by Lightbox.