With this, Zinnia Global Fund joins the list of the company’s investors along with CE-Ventures and Lightbox Ventures, who also participated in this round. ICBC and DPNC acted as advisors on the transaction.
With this new fundraising, the company will cater to much larger audiences with more tailored solutions and brand new offerings, while continuing to focus on sustainability at the very core of the business.
Having grown at a CAGR of 120% between FY15-20, despite the pandemic, the company said it was able to preserve 95% of its revenue in FY21. The business is now looking at scaling its annual revenue to Rs 2,200 crore ($300 million) in the next 5 years, generating Rs 650 crore ($90 million) in free cash annually, by FY26.
As a part of its expansion efforts, Furlenco has recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more Tier 1 and Tier 2 cities. With this, Furlenco is now available in 13 cities, including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysore, and Ahmedabad.
According to the 2020 Redseer Report, the rental furniture and appliance industry currently stands at around Rs 33,500 crore ($4.6 billion), and is expected to grow at a CAGR of 11% between 2021-25.
Ajith Mohan Karimpana, Founder & CEO, Furlenco said, “Lifestyles have evolved and so have the needs of the urban Indian when it comes to how they do up their home. However, the furniture industry has some catching up to do in providing the right kind of solutions. We are excited to lead the way in transforming how people access furniture and we want to keep innovating in this space.”
He added: “The funds we have raised will play a critical role in this journey and fuel our growth with investments and design. We know there is immense strength and scope of innovation in the B2C commerce space and the sectors we operate in. We are tapping into that potential and will definitely disrupt the market with what we are planning.”
“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, Zinnia Global Fun.