“Between 30-40% of our products are 50% more premium than our competitors in the market. Our premium products drive about 40% of our revenue,” Karimpana told Mint in an interview.
Furlenco’s closest rival is initial public offering (IPO)-bound Rentomojo, which offers monthly subscriptions for furniture, appliances, and even hospital beds. For fiscal year 2025 (FY25), Rentomojo reported unaudited net revenue of ₹270 crore, with net profit rising to ₹40 crore from ₹22 crore in FY24, an 82% jump. The company had turned profitable for the first time in FY23, posting ₹6.2 crore in profit on operating revenue of ₹121 crore.
By comparison, Furlenco posted revenue of ₹240 crore in FY25, swinging to a profit of ₹3 crore from losses of ₹130 crore in FY24, according to data from startup intelligence platform Tracxn.
“We’re currently on track to do over ₹370 crore and about ₹40 crore in profit this fiscal,” Karimpana said. He attributed the turnaround to debt restructuring, consistent growth, and cost optimization. “We built our own manufacturing unit, taking control of our production and supply chain. This strategic move has significantly reduced our costs and improved efficiency.”
From geographic expansion to category focus
This year, Furlenco’s strategy has shifted from expanding into new cities to broadening its product categories. Children’s furniture and premium products are key pillars of this approach.
Last year, the company focused on geographic growth, entering nine new cities, including Indore, Lucknow, Coimbatore, and Vijayawada, and extending services to smaller hubs like Meerut, Sonipat, and Panipat. Today, Furlenco serves 28 cities across 12,000 pin codes.
Currently, the company is rolling out premium products at a steady pace, launching a new item every three weeks. “We have about 100 products coming up within the next six to eight months. Right now, we’ve just released a few,” Karimpana said.
Pricing for these offerings is higher than Furlenco’s standard range. While regular rentals start at ₹500 and go up to ₹1,500, premium products will range from ₹2,000 to ₹4,000. The company’s premium furniture is made with higher-quality materials, larger dimensions, up-to-date designs, and detailed stitching.
Children’s furniture: a swappable segment
Premium furniture is not the only focus. Furlenco recently introduced children’s furniture, tapping into a market where kids outgrow furniture quickly.
“Any category that we introduce, we want it to tomorrow contribute at least 10% of revenue,” Karimpana said, citing the subscription-based variable model, where users pay a set amount for 15 products of any kind.
Subscriptions today account for 30% of Furlenco’s revenue. Within three years, the company aims to hit ₹700 crore in revenue, with children’s furniture contributing ₹100 crore.
“We’re designing this segment so that it’s swappable. Once you’re done, you give it back to us, take something else. We see kids (the segment) as a 10-year programme,” Karimpana added.
Riding a growing market
Furlenco’s strategy aligns with the expansion of India’s furniture rental market. A 2020 Grant Thornton Bharat report pegged the market at $4.1 billion and projected it would grow at a 26% CAGR (compound annual growth rate) to $13 billion by 2025.
A large, young population under 35 is another tailwind. Frequent job or city changes make permanent furniture less appealing, while rising disposable incomes are pushing demand for aspirational, high-end pieces.
“We believe that with the growing residual income of Indians, people want more aspirational furniture,” Karimpana said.
With the market set to expand, Furlenco is positioning itself to capitalize on the trend while preparing for a public listing. Furlenco plans to submit its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in December 2026 and is targeting a Q1 2027 listing. The company declined to comment on the size of the IPO.
To date, the company has raised $130 million from investors including Lightbox, Trifecta Capital, Axis Capital Partners, Crescent Enterprises, Sheela Group, HDFC Bank, and Axis Bank. The startup was last valued at $113 million as of December 2024, according to Tracxn.
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