Furlenco, the Bengaluru-based subscription furniture rental firm, has raised ₹125 crore in its latest funding round from Sheela Foam, the parent company of Sleepwell.
The round also saw participation from investors such as Whiteoak and Madhu Kela.
This marks Sheela Foam’s first follow-on investment in Furlenco since acquiring a 35% stake in July 2023 for a cash consideration of ₹300 crore.
The fresh funds raised will be used to deepen its presence in existing cities and expand into new high-potential markets across India, while further investing in product innovation, technology, and customer experience. Furlenco will also deploy the funds to strengthen its supply chain, expand its portfolio of furniture and home products, and scale its offline and omnichannel footprint to reach a wider set of urban consumers.
As part of its long-term strategy, Furlenco is also preparing for a potential IPO over the next few years.
Founded by Ajith Mohan Karimpana in 2012, Furlenco operates on a subscription-focused model that offers furniture and appliances on monthly or annual plans. Its services include free maintenance, deep cleaning, relocation support and product swapping, positioned as a convenient alternative to traditional ownership. Customers can also choose refurbished and purchase options.
Furlenco turned profitable in FY25 and achieved ₹240 crore in revenue and ₹3 crore profit from -₹139 crore in FY24, backed by its asset-light subscription model and disciplined capital allocation. Furlenco has more than 1.5 lakhs active subscribers and has furnished over 10+ lakhs houses in India since its inception.
The company has raised capital from several investors over the years, including Sheela Foam, Lightbox Ventures, Crescent Ventures and Eagles.
Ajith Mohan Karimpana, Founder and CEO, Furlenco, said, “We are embarking on the next phase of Furlenco’s growth journey. This fundraise will help us deepen our presence in existing markets, strengthen our footprint and bring our offerings closer to more customers. With a clear path to profitability and scale, this round sets us up strongly for the next coming years, as we work towards building a long-term, public-market-ready business.”
