People are trying to lease everything from property to clothes. Furniture and appliances are no oddity. It gives you access to various useful products, without the limitation of buying and management. Furlenco is an Indian online furniture rental platform that was integrated in 2012. It was founded by Ajith Karimpana, an engineering graduate from NIT Jalandhar and alumnus of Temple University. Furlenco is India’s foremost furniture and appliance rental app presently delivering in Bengaluru, Mumbai, Pune, Delhi, Gurugram, Noida, Hyderabad and Chennai. Furlenco, Rentomojo, Cityfurnish are some of the most popular furniture rental companies operating in India. If someone is in a situation that summons for temporary living arrangements, renting makes sense.
This platform proposes furniture for living rooms, bedrooms and dining rooms, along with a populace of benefits that include free relocation, free switch, free deep-cleaning services and damage waivers, enabling customers to rent furniture and appliances for residential use. It invests in furniture which it invades, stores in warehouses set up around important markets such as in Bengaluru, Maharashtra and National Capital Region and delivers using third-party logistics services. The products are bundled and offered on monthly rental plans.
“However, the times are tough and uncertain,” he said. “We look forward to some specific announcement from the government around supporting the startup community with a dedicated financial package for revival.”
How it all started?
Ajith capitalised Rs 50 lakh from his savings and roped in another Rs 2 crore from his friends and family. VCs hadn’t begun spilling millions and billions into Indian startups then. So Furlenco kept raising debt from HNIs and angels, till 2015. Furlenco’s heftiest challenge was to transform the philosophy of the conventional furniture-buying Indian. According to Ajith, it is the reluctance to buy furniture—which not only costs more but is also a long-term commitment—that builds the demand for rental services among youngsters.
“If Netflix had only been about existing movies, it would not have been a success. But they have their series. Very few furniture rental services have their designs and manufacturing units. Netflix originals have no competitors. We want to be the Netflix for furniture.” says, Ajith.
Furlenco’s Business Model and Monthly Recurring Revenue has Allowed it to Stay Afloat in Covid-19
In the trail of coronavirus, many startups are confronting disturbances in their operations. But that’s not the case with Furlenco, according to Karimpana. He explained that their business revenue model had kept it floating during the downshift with monthly subscription obtained as usual from customers. Karimpana also added that the ongoing Covid-19 pandemic had impacted some parts of the business but not the revenue.
The company raised $30 million in October 2016. Furlenco had secured $6 million in its Series A funding round led by LightBox VC in March 2015. Earlier, the company had received funds amounting to $100k via angel funding. In April 2020, the company closed a $10 million (approx ₹76.4 crores) debt and equity financing round led by existing investors. The startup claims that it had raised funds in a blend of debt and equity with the round beginning in November 2019. Further, Bollywood actor Aamir Khan, who is an existing backer of the startup, has also invested in this round. For this funding round, Waterfield Advisors, DPNC Advisors, and Quadito were the advising partners to Furlenco.