Furlenco’s Profit Breakthrough: How India’s Furniture-Rental Pioneer Raised ₹125 Crore and Readies for an IPO

After years of heavy losses and strategic reinvention, Furlenco’s shift to profitability and fresh capital raise signal a new chapter for India’s subscription economy.

In October 2025, Furlenco, one of India’s earliest and most prominent furniture-rental startups, achieved a landmark milestone — turning profitable for the first time in its 13-year history. This achievement, followed by a ₹125 crore (~$15 million) funding round led by major backer Sheela Foam and participation from WhiteOak Capital and Madhu Kela, marks a pivotal moment in Furlenco’s evolution from cash-burning scale-up to a sustainable, growth-oriented business with public-market ambition.

 From Losses to Profit: Furlenco’s FY25 Turnaround

Furlenco’s financial performance in FY25 was a dramatic turnaround from the previous year. After posting a net loss of ₹130.2 crore in FY24, the Bengaluru-based startup reported its first annual net profit of ₹3.1 crore in FY25 — a milestone that underscores disciplined cost management and strategic portfolio shifts.

The company’s operating revenue surged ~64–65%, climbing to ₹228.7 crore from ₹139.6 crore in the prior year, reversing a prior revenue decline and highlighting renewed customer demand. Rental income — the core of Furlenco’s subscription-led model — accounted for a significant share of this growth, while furniture sales more than doubled in the same period.

This financial pivot wasn’t accidental. A renewed focus on premium product offerings — with a greater share of higher-margin SKUs — expanded revenue opportunities, differentiated the brand, and helped improve profit margins. Furlenco also streamlined expenses, reducing cost structures and improving overall operational efficiency.

 ₹125 Crore Funding: Capital for Expansion and Innovation

In December 2025, Furlenco secured a significant infusion of fresh equity — ₹125 crore (~$15 million) — from Sheela Foam Limited, with additional support from WhiteOak Capital and Madhu Kela. This funding comes as the company transitions from heavy losses to profitability and prepares for its next growth phase.

Strategic Focus of the New Capital

• Market expansion: Deepening presence in existing cities and entering new urban and semi-urban markets.

• Product innovation: Broadening the portfolio across furniture, appliances, and lifestyle solutions.

• Omnichannel growth: Strengthening both offline retail and digital discovery channels.

• Supply chain and customer experience: Modernizing logistics and service delivery to reduce lead times and enhance customer satisfaction.

• Technology investment: Upgrading systems to support scalability, personalization, and data-driven operations.

This fresh capital represents Sheela Foam’s second major commitment to Furlenco. The furniture giant originally acquired a 35% stake in the business in July 2023 for ₹300 crore, bringing manufacturing scale and retail distribution expertise to the digital rental model.

 Subscription-Led Model: The Heart of Furlenco’s Business

Furlenco operates a subscription-driven platform that allows customers to rent furniture and appliances on flexible monthly plans. The company offers over 300 SKUs — from sofas and beds to kitchen and decor pieces — and serves customers across more than 28 Indian cities including Bengaluru, Mumbai, Delhi-NCR, Chennai, and Kolkata.

Furlenco’s broader ecosystem also includes:

• UNLMTD: A subscription service bundling multiple items under single plans.

• Furbicle: Refurbished furniture resale for value-conscious buyers.

• House of Kieraya (HoK): The parent brand umbrella managing product sales, rentals, and hybrid offerings.

This hybrid model — combining rentals, product sales, and refurbished inventory — enables diverse revenue streams, maximizes asset utilization, and encourages long-term customer relationships across lifecycle stages.

 Customer Experience and Omni-Channel Strategy

Furlenco has made omnichannel retail expansion a key strategic priority. Even as digital discovery remains vital, the company is scaling physical touchpoints — retail stores, experience centers, and showrooms — to engage urban customers directly and convert subscriptions through guided consultations and on-ground showcases.

These offline expansions leverage Sheela Foam’s extensive retail footprint, amplifying brand visibility and creating seamless customer experiences that blend online convenience with tactile furniture exploration.

 Competitive Landscape and Market Dynamics

India’s furniture rental and home-lifestyle market is growing rapidly, driven by changing consumer preferences that favor flexibility over ownership, particularly among millennials and Gen Z urban professionals. Companies like Rentomojo have also reported strong performance and IPO progress, underlining category momentum.

But Furlenco’s deep investment in premium offerings, omnichannel strategy, and diversified services gives it a distinctive competitive edge. Its shift toward higher-margin products has played a key role in profitability and market differentiation.

 Path to IPO: Vision and Market Readiness

With profitability now achieved and fresh funding in hand, Furlenco is positioning itself for public market consideration. Management has indicated intentions to file a Draft Red Herring Prospectus (DRHP) by late 2026 with an eye on a potential IPO after FY27.

Earlier reports suggested the company might undertake a pre-IPO fundraise of around ₹100 crore to further strengthen balance sheets and enhance enterprise readiness. With a projected revenue target of ₹370 crore and near-₹40 crore profit in the current fiscal, the startup is building strong forward momentum.

 Operational Efficiency and Cost Control

Furlenco’s return to profitability was not just revenue-driven — it was also a story of effective cost management. The company reduced its overall expense base, improved asset utilization, and trimmed employee and finance costs, which helped drive positive operating cash flow.

Such operational discipline, combined with strategic capital inflows, positions Furlenco for sustainable growth without overreliance on dilutive fundraising.

 Looking Ahead: Growth and Scalability

As urbanization continues and consumer spending patterns evolve, Furlenco’s subscription model is well-aligned with broader lifestyle trends that prioritize experience, flexibility, and curated living spaces. The company is investing in:

• PAN-India expansion

• Product diversity (including premium and lifestyle segments)

• Technology platforms for personalization

• Strong after-sales and logistics networks

These initiatives aim not just at growth but scalable profitability, a key driver for future funding rounds or public listing performance.

 Conclusion: A Strategic Rebound with Long-Term Potential

Furlenco’s journey — from years of losses to profitable operations, fresh equity capital, and IPO aspirations — exemplifies a maturing subscription business navigating market headwinds and emerging stronger. With strong backing from Sheela Foam and seasoned investors, its blend of digital subscription services, omnichannel engagement, and product innovation has not only restored financial balance but set the stage for the next phase of scalable growth.

In a market hungry for agile, lifestyle-centric solutions, Furlenco’s resurgence offers a blueprint for sustainable scaling in India’s subscription economy.