Furniture-rental brand Furlenco has raised INR 125 crore in a new round led by listed mattress maker Sheela Foam, with participation from WhiteOak and investor Madhusudan Kela. The Bengaluru-based firm added that the proceeds will be used to expand into more cities, step up product innovation and strengthen its omni-channel network.
Furlenco said the funding comes as it prepares the groundwork for a potential public listing in the coming years. The company characterised the round as backing for what it calls its strongest growth phase, focused on supply-chain upgrades and a wider offline footprint.
Financial Turnaround & Operating Scale
The subscription-led player reported a return to profitability in FY25, with revenue of about INR 240 crore and net profit of INR 3 crore, against a loss of INR 130.2 crore in FY24. Furlenco also claims over 1.5 lakh active users and more than 10 lakh homes furnished since inception.
“This fundraise will help us deepen our presence in existing markets and bring our offerings closer to more customers,” founder and chief executive Ajith Mohan Karimpana said in a statement. He added the company aims to scale while maintaining a “clear path to profitability” as it builds a public‑market‑ready business.
Strategic Ties with Sheela Foam
Sheela Foam first bought a 35% stake in Furlenco’s parent, House of Kieraya, in July 2023 for around INR 300 crore, implying an enterprise valuation of roughly INR 857 crore at the time. It later acquired an additional 10.5% stake in October 2024 for INR 107 crore. As per company filings, Sheela Foam held 43.89% on a fully diluted basis as of March 2025.
In its earlier exchange filing announcing the Furlenco investment, Sheela Foam said the deal would help it enter the “fast‑growing branded furniture and furniture rental market” and diversify its presence in furniture sales.
Furlenco IPO: Market Context & Next Steps
Industry estimates peg India’s furniture market at roughly USD 80 billion by 2025, with the rental segment seen expanding rapidly from a small base. Furlenco has previously indicated plans to file a draft IPO prospectus by end‑2026, subject to market conditions and sustained profitability.
Analysts say strategic capital from an operating partner can help consumer brands with procurement synergies and distribution access, though sustained margins will hinge on asset turns and credit discipline in subscription commerce.
Furlenco’s Latest Funding: At a Glance
- Round size: INR 125 crore; led by Sheela Foam with WhiteOak, Madhu Kela joining.
- Use of proceeds: city expansion, product innovation, omni‑channel scale‑up, supply‑chain strengthening.
- Profitability: FY25 revenue ~INR 240 crore; PAT INR 3 crore vs INR 139 crore loss in FY24.
- Customer metrics: 1.5 lakh+ active users; 10 lakh+ homes furnished.
- Sheela Foam relationship: 35% stake bought for INR 300 crore in 2023; 10.5% added for INR 107 crore in 2024; 43.89% as of Mar‑2025.
- IPO watch: Company preparing for a listing “in the coming years”; earlier guidance pointed to a possible DRHP by end‑2026.
Conclusion
Furlenco’s latest funding extends a strategic partnership with Sheela Foam while giving the rental‑furniture brand capital to press its omni‑channel expansion. With a modest FY25 profit and a pathway to public markets, execution on margins and asset efficiency will be the key variables to watch.
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