By Furlenco

Furlenco, a Bangalore-based business that rents out furniture and appliances, announced today that it has raised $140 million in a funding round to expand its operations in the South Asian market and investigate worldwide market expansion.

According to the seven-year-old Indian business, the new $140 million Series D financing round includes a $120 million debt raise and the remainder in equity. Zinnia Global Fund led the fresh financing round. According to data insight platform Tracxn, CE-Ventures, and Lightbox Ventures also participated in this round, bringing the company's total debt and equity financing to over $240 million.

Customers can rent a variety of furniture pieces from Furlenco, which has locations in more than a dozen Indian cities. It has extended to additional categories in recent quarters, including fitness equipment, appliances, technological products, and two-wheeler vehicles.

A queen-size bed on the platform, for example, maybe rented for as little as $9 per month, while a laptop can be rented for as little as $40 per month. Customers have been drawn to the business in part because of its three-day delivery guarantee and free deep cleaning of products. It also has a collaboration with NoBroker, an Indian startup sponsored by General Atlantic that assists customers in avoiding brokers when looking for new residences.

According to the company, expanding into newer categories helped it recoup and preserve 95 percent of its income in the fiscal year that concluded in March of this year. Furlenco may consider expanding into the Middle East and other overseas markets, according to Lightbox Ventures.

The business, which competes with Rentomojo, said it will use the new funding to accelerate its expansion, as well as invest in design and aim to produce $300 million in annual revenue over the next five years.

“As lifestyles have changed, so have the needs of urban Indians in terms of how they decorate their homes. The furniture sector, on the other hand, has some catching up to do in terms of delivering the correct solutions. We recognize the enormous potential for innovation in the B2C commerce industry and the industries we serve. In a statement, Ajith Mohan Karimpana, founder and CEO of Furlenco, said, "We are tapping into that potential and will undoubtedly disrupt the industry with what we are preparing."

When the coronavirus invaded the country last year, rent platforms, like many others, suffered a significant drop. However, the market it is pursuing remains a significant one. The rental furniture and appliance market is currently valued at about $4.5 billion, according to industry estimates.

“We're thrilled to be working with Furlenco, which is fast revolutionizing furniture subscription services for India's lifestyle aspirations. Furlenco is positioned for ongoing strong growth as an industry leader with a strong management team,” said Ritesh Abbi, Zinnia Global Fund.

(Source: TechCrunch)