Furlenco Turns Profitable In FY25, Revenue Zooms 64% To INR 229 Cr

Furniture rental startup Furlenco has reported its first-ever annual profit in FY25, marking a turnaround from steep losses a year ago. In the fiscal year, the startup posted a net profit of INR 3.1 Cr against a net loss of INR 130.2 Cr incurred in FY24.

Operating revenue jumped 64% to INR 228.7 Cr in FY25 from INR 139.6 Cr in the previous fiscal. Imperative to mention that Furlenco has steered back from declining revenues in the previous fiscal year, after reporting a 10% YoY drop in its top line in FY24.

The key reason driving Furlenco’s turnaround story would be its increased focus on premium furniture offerings, with 30-40% of products priced 50% higher than competitors. The premium segment drove about 40% of its overall revenue, helping improve margins and market differentiation.

Income from furniture rental services made up 91% of operating revenue, which rose by 61% YoY to INR 208 Cr in the fiscal year. Meanwhile, income from the sale of products, including furniture such as sofas and beds, also more than doubled YoY to INR 21 Cr in FY25.

Including an other income of INR 11.3 Cr, Furlenco’s total income stood at INR 240.1 Cr, up from INR 151.9 Cr in FY24.

Founded in 2012 by Ajith Mohan Karimpana, Furlenco operates a subscription-based furniture rental platform, offering more than 300 SKUs to users across 28 cities like Bengaluru, Mumbai, Delhi NCR, Chennai, and Kolkata.

It also sells furniture under its umbrella brand House of Kieraya (HoK), which includes Furlenco, refurbished furniture platform Furbicle, and the subscription service UNLMTD.

In March 2025, the startup raised about INR 60 Cr ($7 Mn) in debt from Northern Arc and CredAvenue by issuing non-convertible debentures (NCDs).

This was Furlenco’s first fundraise since its $140 Mn Series D round in 2021, which included a debt component of $120 Mn and the rest in equity. The startup has raised a total of over $269 Mn to date from investors like Lightbox, Crescent Enterprises and Eagle Holdings.

In July 2023, Sleepwell parent Sheela Foam acquired a 35% stake in Furlenco for INR 300 Cr. The said deal gave Furlenco access to a large manufacturing and retail network and strengthened Sheela Foam’s presence in the home and furniture space.

As per reports, Furlenco is gearing up for a public listing soon with plans to file its DRHP late next year. The startup would also be looking to raise a pre-IPO funding round of INR 100 Cr.

In July, CEO Karimpana told ET that the startup is eyeing to close FY26 with a net profit of INR 35 Cr and a revenue of INR 350 Cr. As of now, the startup is also focusing on aggressive offline expansion and expanding its premium product line to prepare for the public listing.

Furlenco’s profitability comes amid a period of turmoil for the D2C furniture space. For instance, its competitor Pepperfry, once valued at $350 Mn, was recently acquired by TCC Concept in what industry insiders describe as a distress sale.

Meanwhile, its other competitor Rentomojo is also eyeing a public listing by FY27 and has appointed bankers IIFL and Motilal Oswal to helm its IPO. The startup’s net profit zoomed 82% to INR 40 Cr in FY25 from INR 22.1 Cr profit in FY24, as per its provisional numbers.

Where Did Furlenco Spend In FY25?

On the expense front, the startup managed a significant reduction in costs. Total expenses fell 16% to INR 236.9 Cr in FY25 from INR 282.1 Cr a year earlier, driven by lower employee benefit expenses and finance costs.

Employee Benefits: The company spent INR 30.7 Cr on employee benefits during FY25, down 36% from INR 47.8 Cr spent in FY24.

Cost Of Materials: Cost of materials consumed doubled to INR 14.6 Cr in FY25 from INR 6.7 Cr spent in FY24.

Other Expenses: Other miscellaneous expenses, which include operational, logistics, and administrative costs, dropped 16% to INR 134.7 Cr from INR 161 Cr spent a year ago.

Edited By Akshit Pushkarna

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