Furniture Rental Startup Cityfurnish raises $2.5 million in funding from Northern Arc Capital, Others

• ByStartupStory     |    November 19, 2022

A mix of loans and equity was used to raise $2.5 million in the follow-on Series A investment round for the startup furniture and appliance rental company Cityfurnish. This marks the completion of the startup’s Series A investment round. Northern Arc Capital served as the round’s lead investor. While current backers took part in its equity round, Western Capital and UC Capital took part in the loan round.

Cityfurnish has already secured $10 million in equity and loan capital, not including the present campaign.

Neerav Jain and Saurabh Gupta founded Cityfurnish in 2015; it is a full-stack platform that provides furniture and appliance rental services, including designing furniture for specific living spaces, providing last-mile delivery, and assembling furniture.

According to Cityfurnish, it offers free delivery services within 72 hours. According to the website, it is currently providing services in seven Indian cities: Delhi, Pune, Bengaluru, Mumbai, Gurgaon, Noida, and Hyderabad. The firm raised $5 million in fundraising in 2019 from a group of investors that included Paul Buchheit from Gmail, Chen from Youtube, Global Founders Capital, and Venture Highway, among others. The startup intends to use the additional capital for business growth, brand marketing, and technology development. By 2025, it would also use the cash to expand throughout India.

YCombinator, Soma Capital, SCM Advisors, and Boomerang Ventures are just a few of the investors on its cap table. It claimed that throughout 2022, its revenue had increased by 100%. Furlenco, Rentickle, and Rentomojo, among others, compete in the furniture rental market. The market for renting furniture in India was estimated to be worth $4.1 billion in 2020. By 2025, the market is anticipated to reach $13 billion in revenue, growing at a CAGR of 26%. In an effort to save expenses, the young furniture rental company Furlenco recently let go of 180 workers. The business received $15 million in capital from TradeCred the year before.

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