Merger and Acquisition

Sheela Foam Acquires Furlenco and Kurlon Enterprises

• ByStartupStory     |    July 18, 2023

Sheela Foam Ltd, the renowned furniture manufacturer based in Delhi-NCR and known for its Sleepwell mattresses, has announced the acquisition of Furlenco and Kurlon Enterprises Ltd, as stated in a regulatory filing on Monday.

In its strategic move to enter the branded furniture market, Sheela Foam has acquired a 35% stake in Furlenco for Rs 300 crore. This collaboration will enable Sheela Foam to expand its online furniture offerings by incorporating Furlenco’s modern and youth-friendly selection. The acquisition of Furlenco is expected to be finalized by August 31, 2023, subject to working capital adjustments and other considerations.

Furlenco, founded in 2012 by Ajith Mohan Karimpana, has emerged as a prominent player in the online furniture rental space, competing alongside other major players such as Rentomojo, Guarented, Pepperfry, and Rentickle. The company has garnered substantial investments totaling over $96 million from renowned investors, including Lightsoil, Blacksoil, and Eudora Ventures. Furlenco’s success has been attributed to its positive unit economics, with Karimpana previously stating its goal of achieving Rs 100 crore in revenue.

Simultaneously, Sheela Foam has acquired a significant 94.66% stake in Kurlon Enterprises Ltd (KEL) for an equity valuation of Rs 2,150 crore, equivalent to 3.46 crore shares. This strategic move will allow Sheela Foam to consolidate its position in the southern and eastern regions of India, where Kurlon has a strong presence in the fragmented mattress and foam-based products market. The acquisition of Kurlon Enterprises is projected to conclude by November 30, 2023.

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