Furlenco closes $10 million debt and equity financing round with existing backers

NEW DELHI: Online furniture rental and home decor services company Furlenco has closed a $10 million (about Rs 76.4 crore) debt and equity financing round, led by the cohort of investors of the Bengaluru-based company.

The last round saw venture capital firm Lightbox, and

Scion Saket Burman, who invested through his personal investment arm Chowdry Associates, has arranged equity financing.

Moreover, a host of very wealthy individuals, including Kris Gopalakrishnan, former managing director of

and Gautham Radhakrishnan, a former partner at private equity firm Tata Capital, provided debt financing through the issuance of non-convertible debentures (NCDs) by the company.

Additionally, Bollywood superstar Aamir Khan, also an existing investor in Furlenco, also participated in the latest round, which overall is an equal split between debt and equity, and the process of which started in November last year.

Waterfield Advisors, DPNC Advisors and Quadito acted as advisors to Furlenco. To date, Furlenco, which was founded in 2012 by former Goldman Sachs and Morgan Stanley executive Ajith Mohan Karimpana, has raised about $43 million in equity and about $45 million in debt financing. Of the latter, the company has repaid around $20 million so far.

“Furlenco is already operationally profitable and this cycle will help us further progress towards our goal of becoming fully profitable over the next 12 to 18 months,” Karimpana told ET. The financing round values ​​Furlenco at approximately $125 million.

The subscription-based online furniture rental platform, which offers rental furniture, home decor and appliances, has since its inception served approximately 110,000 customers and operates in eight cities across the country.

“While the ongoing Covid-19 pandemic has definitely impacted us all, Furlenco’s subscription business model with recurring monthly revenue allows us to be much more resilient than most other startups who are seeing their monthly revenue plummet. significantly,” Karimpana said.

The company was among the first to adopt debt instruments such as MNTs to meet its financing needs, although equity financing for startups slowed in 2016-17. NTMs are generally defined as unsecured bonds that cannot be converted into stock or company stock and generally have higher interest rates than convertible debentures, which can be converted into stock.

Carol M. Barragan