Furlenco raising Rs 38 crore in series-A funding from Lightbox Ventures
The three-year-old startup has been founded by Ajith Karimpana, who has worked at Morgan Stanley and Goldman Sachs in the US.
By Madhav Chanchani, ET Bureau | Updated:
MUMBAI: After fashion, online furniture and home decor startups are becoming the most attractive niche for venture capital investors. Bengaluru-based Kieraya Furnishing Solutions Pvt Ltd, which owns furniture rental website Furlenco, is raising aroundRs 38 crore in series-A funding from Lightbox Ventures.
The three-year-old startup has been founded by Ajith Karimpana, who has worked at Morgan Stanley and Goldman Sachs in the US. Karimpana, who moved back to India in 2009, saw an opportunity in the market after failing to find right furniture himself. He started the company as Rent Ur Duniya in 2012, which has now morphed into Furlenco.
“Furniture is one of the three most expensive things that you buy and does not have access to long-term financial support (loans) like cars and homes,” said Siddharth Talwar, partner at Lightbox, who is joining Furlenco's board.
The startup, which itself designs the furniture with delivery promised in three days, initially started out by targeting the expatriate market. Now Furlenco offers a mix of rental packages, starting from Rs 1,500 a month for a bedroom set to deals for a 3BHK starting at Rs 7,500 a month. The startup has furnished 600 homes, with an active subscriber base of 200 growing by 50% month on month. “Our philosophy is that one should never need to own furniture and the rental market should reach $2-3 billion in the next 5-7 years,” said 35-year-old Karimpana. Furlenco, which also owns the furniture it rents, will use the funding to expand product range, build technology and invest in the service further.
Other startups like Rentomojo, started by IIT Madras graduates, is taking a marketplace approach and renting appliances like refrigerators and washing machines. “We are growing at 70% month on month,” said CEO Geetansh Bamania. The overall furniture market is said to be Rs 1.2 lakh crore or $20 billion, out of which only 5% is said to be organised with no major brands.
The three-year-old startup has been founded by Ajith Karimpana, who has worked at Morgan Stanley and Goldman Sachs in the US. Karimpana, who moved back to India in 2009, saw an opportunity in the market after failing to find right furniture himself. He started the company as Rent Ur Duniya in 2012, which has now morphed into Furlenco.
“Furniture is one of the three most expensive things that you buy and does not have access to long-term financial support (loans) like cars and homes,” said Siddharth Talwar, partner at Lightbox, who is joining Furlenco's board.
The startup, which itself designs the furniture with delivery promised in three days, initially started out by targeting the expatriate market. Now Furlenco offers a mix of rental packages, starting from Rs 1,500 a month for a bedroom set to deals for a 3BHK starting at Rs 7,500 a month. The startup has furnished 600 homes, with an active subscriber base of 200 growing by 50% month on month. “Our philosophy is that one should never need to own furniture and the rental market should reach $2-3 billion in the next 5-7 years,” said 35-year-old Karimpana. Furlenco, which also owns the furniture it rents, will use the funding to expand product range, build technology and invest in the service further.
Other startups like Rentomojo, started by IIT Madras graduates, is taking a marketplace approach and renting appliances like refrigerators and washing machines. “We are growing at 70% month on month,” said CEO Geetansh Bamania. The overall furniture market is said to be Rs 1.2 lakh crore or $20 billion, out of which only 5% is said to be organised with no major brands.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Related Articles
Sleepwell parent to acquire Kurl-On and Furlenco for Rs 2,035 crore
Text: Rajiv Singh, ET Bureau
These are just three of the 10 offbeat startups we’ve deep-dived into; just three of the 800-odd startups added every year; and just three of the over 3,000 startups that are trying to make it big in India.
The 10 that we’ve picked are novel, but being different or a first mover is no guarantee of being the best mover — or moving at all a few years later.
These are just three of the 10 offbeat startups we’ve deep-dived into; just three of the 800-odd startups added every year; and just three of the over 3,000 startups that are trying to make it big in India.
The 10 that we’ve picked are novel, but being different or a first mover is no guarantee of being the best mover — or moving at all a few years later.
ADVERTISEMENT
