Online furniture rental startup Furlenco has raised $30 million in Series B through a mixture of equity ($15 million) and various forms of debt financing ($15 million). Led by existing investor Lightbox Ventures along with Axis Capital, a Hong Kong based VC fund, the investors also include banks, NBFCs, HNIs and Indian family offices.
With this round, Furlenco claims to have transitioned into a fully debt-financed model to fund its assets. The startup will use the funds raised for expansion to newer categories, product ranges and more cities in the next one year.
Prior to this, the company had raised $6 million from Lightbox Ventures in March 2015 to scale up its operations. In the 18 months post this investment, Furlenco claims to have furnished nearly ‘15,000 homes with products worth over Rs. 100 crore of market value’. Furlenco is currently present in 3 cities – Mumbai, Pune and Bangalore.
Furlenco, which started as RentUrDuniya, works on a monthly subscription model wherein customers can get living room, study room, dining room, bedroom, kitchen solutions and full home furniture starting at Rs. 999 for products such as seaters, tables, sofa cum beds, queen beds, book shelves, among others. The startup designs, owns and holds all the inventory and takes responsibility for setting up the furniture, cleaning and taking it back. Plans can cost up to Rs 6,850 to furnish a 2BHK depending on the furniture involved.
Other investments in the rental & furniture space:
- In September 2016, online appliances rental startup Guarented raised $500,000 from Kalaari Capital owned KStart.
- In the same month, online furniture marketplace Pepperfry raised Rs 210 crore from existing investors.
- In August 2016, personal home furnishing provider Livspace raised Rs 100 crore (~$14.8 million) in a round of funding led by existing investor Bessemer Ventures Partners, with participation from Jungle Ventures and Helion.
- In the same month, Urban Ladder raised $3 million through debt financing.
- In April 2016, Interior design and furnish startup Houssup raised undisclosed amount of seed funding.
- In August 2015, interior design and home decor company Foyr raised $1 millionfrom Astarc Ventures.