Furlenco’s operating revenue increases by 1.5x, but FY22 loss widens by 71% YoY to INR 149 crore.

• ByStartup Story Team     |    March 4, 2023

Furlenco, a Bengaluru-based furniture rental startup, has seen a significant increase in its net loss for the financial year 2021-22. The company reported a 71% rise in standalone net loss to INR 148.68 Cr, up from INR 86.92 Cr in the previous fiscal year. This was due to an increase in expenses resulting from the growth of its business. However, Furlenco also experienced a 1.5X growth in operating revenue, which rose from INR 84.31 Cr in FY21 to INR 128.85 Cr. The figures were revealed in filings by the company’s parent, House Of Kieraya Private Limited, with the Ministry of Corporate Affairs.

Furlenco, the Bengaluru-based furniture rental startup, saw a significant increase in revenue and expenses during the financial year 2021-22. The company generated INR 9.54 Cr in revenue from the sale of furniture and office equipment, compared to zero revenue in the previous fiscal year. Meanwhile, leasing services revenue increased to INR 119.31 Cr from INR 84.31 Cr in FY21. Total revenue, including other income, grew by 1.6X to INR 137.22 Cr from INR 88.31 Cr in FY21. However, expenses also surged by 1.6X to INR 285.9 Cr from INR 175.23 Cr in FY21, reflecting the growth in the company’s business. These figures were disclosed in the filings of Furlenco’s parent company, House Of Kieraya Private Limited, with the Ministry of Corporate Affairs.

Employee benefit expenses rose by 1.3X to INR 48.41 Cr, compared to INR 36.51 Cr in the previous fiscal year. Other expenses, including rental costs, legal professional charges, advertising and promotional expenses, surged by 1.9X to INR 171.43 Cr in FY22 from INR 90.68 Cr in FY21. The company’s advertising and promotional expenses increased by a staggering 3.4X, from INR 8.33 Cr in FY21 to INR 28.87 Cr in FY22. 

Furlenco, the online subscription-based furniture rental platform founded by Ajith Mohan Karimpana in 2012, saw its net loss widen on a consolidated basis to INR 151.47 Cr in FY22 from INR 87.58 Cr in FY21. However, consolidated revenue increased to INR 136.62 Cr from INR 87.97 Cr. The company operates in major cities across India, including Bengaluru, Delhi NCR, Hyderabad, Chennai, Mumbai, and Pune, and competes with other players in the furniture rental segment, such as RentoMojo and NoBroker. 

Furlenco, the Indian furniture rental startup, has raised $228.6 Mn in funding to date from investors including Lighbox, Zinnia Global Funding, and CE-Ventures. In March 2022, the company laid off approximately 180 employees as part of its efforts to achieve profitability before going public. According to sources, Sheela Foam Ltd, the manufacturer of the Sleepwell mattress brand, is in advanced talks to acquire Furlenco to expand into new business categories. These details were disclosed in reports from various sources.

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