Quick Take
- Furlenco posted Rs 3.1 Cr net profit in FY25 — its first-ever annual profit — reversing a Rs 130.2 Cr loss in FY24.
- Total revenue rose +59% YoY to Rs 240 Cr, while total expenses fell 16% to Rs 236.9 Cr in the same period.
- EBITDA margin swung to +24.45% from -54.68%, and operating cash flow turned positive to Rs 50.8 Cr.
Furlenco Turns Profitable in FY25, posting a net profit of Rs 3.1 Cr in the fiscal year ended March 2025 — the first annual profit in the Bengaluru-based furniture rental startup’s 13-year history, according to consolidated financial statements filed with the Registrar of Companies. The startup posted a net profit of Rs 3.1 Cr against a net loss of Rs 130.2 Cr incurred in FY24 — a Rs 133 Cr swing in a single financial year. Total income, including other income of Rs 11.3 Cr, stood at Rs 240 Cr, compared with Rs 151.9 Cr in the previous year.
Operating revenue jumped 64% to Rs 228.7 Cr in FY25 from Rs 139.6 Cr in the previous fiscal — a turnaround from a 10% YoY revenue decline Furlenco had reported in FY24. The recovery was driven by accelerated subscription growth, a sharp pivot toward premium furniture offerings, and a structural overhaul of the company’s cost base that cut total expenses by 16% even as the top line expanded by more than half. The result is a unit economics profile that no analyst expected this quickly: the firm spent Rs 1.03 to earn every rupee of operating revenue in FY25, compared to Rs 2.03 in FY24.
StartupFeed Insight
Furlenco’s FY25 numbers are more impressive than the headline Rs 3.1 Cr profit suggests — because the profit is not the point. The point is what happened to the cost structure. Employee costs fell 36%. Finance costs fell 41%. Total expenses dropped Rs 45 Cr while revenue grew Rs 88 Cr. That is a Rs 133 Cr swing on the bottom line, delivered simultaneously through top-line acceleration and bottom-line compression — a combination most asset-heavy startups cannot achieve simultaneously because growing revenue in a rental model usually requires adding assets (and therefore depreciation). Furlenco’s ability to grow at 64% while cutting total costs signals that FY22-24’s restructuring — painful as it was, with significant headcount reduction and city exits.
Is Furlenco Turns Profitable in FY25 Sustainable? The Numbers Explained
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Total Income | Rs 240 Cr | Rs 151.9 Cr | +58% YoY |
| Revenue from Operations | Rs 228.7 Cr | Rs 139.6 Cr | +64% YoY |
| Subscription / Rental Revenue | Rs 208 Cr | Rs 129.5 Cr | +61% YoY |
| Product Sales Revenue | Rs 21 Cr | Rs 10 Cr | +110% YoY |
| Other Income | Rs 11.3 Cr | Rs 12.5 Cr | -10% YoY |
| Total Expenses | Rs 236.9 Cr | Rs 282.1 Cr | -16% YoY |
| Employee Benefit Expenses | Rs 30.7 Cr | Rs 47.8 Cr | -36% YoY |
| Finance Costs | Rs 18.6 Cr | Rs 32.2 Cr | -42% YoY |
| Depreciation | Rs 44.5 Cr | Rs 35 Cr | +28% YoY |
| Material Costs | Rs 8.2 Cr | Rs 6.2 Cr | +32% YoY |
| Net Profit / (Loss) | Rs 3.1 Cr | (Rs 130.2 Cr) | Turnaround |
| EBITDA Margin | 24.45% | -54.68% | +79 pp improvement |
| Operating Cash Flow | +Rs 50.8 Cr | -Rs 75.1 Cr | Turnaround |
| ROCE | 5.68% | Negative | Positive for first time |
| Revenue per Rs 1 of opex | Rs 1.03 earned per Rs 1 spent | Rs 0.49 earned per Rs 1 spent | Sharp improvement |
The two numbers that validate the turnaround as structural rather than cosmetic are the EBITDA margin swing — from -54.68% to +24.45%, a 79-percentage-point improvement — and the operating cash flow reversal from -Rs 75.1 Cr to +Rs 50.8 Cr. An asset-heavy rental business does not improve both simultaneously without a fundamental change in how the business operates, not just how aggressively it cuts costs.
About Furlenco (House of Kieraya)
Furlenco is a Bengaluru-based subscription-based furniture and home appliance rental platform founded in 2012 by Ajith Mohan Karimpana. The startup offers more than 300 SKUs to users across 28 cities including Bengaluru, Mumbai, Delhi NCR, Chennai, and Kolkata. Its parent entity, House of Kieraya Ltd, operates three brands: Furlenco (rental and subscription), Furbicle (refurbished furniture sales), and UNLMTD (unlimited subscription service). Key investors include Sheela Foam (Sleepwell parent, ~45.5% stake as of late 2024), Lightbox Ventures, Crescent Ventures, and Eagles. The company has raised approximately $298 Mn in total funding across equity and debt. Founder Ajith Mohan Karimpana holds approximately 12% of the company.
What Drove Furlenco’s FY25 Turnaround?
Three forces combined to produce the result. First, a deliberate shift toward premium. The key driver of Furlenco’s turnaround was its increased focus on premium furniture offerings, with 30-40% of products priced 50% higher than standard catalogue items. Premium subscribers churn less, generate higher revenue per contract, and justify the fixed asset base more efficiently. When a higher proportion of your subscription base is on premium plans, depreciation — your biggest fixed cost as a furniture rental company — gets spread over a more valuable revenue pool.
Second, structural cost discipline. The company streamlined its cost structure and reduced its total expense by 16% to Rs 237 Cr in FY25 from Rs 282 Cr in FY24. Employee benefits fell 35% YoY to Rs 31 Cr. Finance costs dropped 41% to Rs 19 Cr. The finance cost reduction is particularly significant: it indicates that Furlenco has been systematically retiring expensive debt, reducing the interest burden that had weighed on profitability in earlier years. In 2023, Sheela Foam acquired a 35% stake for Rs 300 Cr, and in October 2024, deepened its holding with an additional 10.5% stake purchase for Rs 107 Cr. That capital allowed Furlenco to retire high-cost debt, directly compressing finance costs.
Third, revenue model evolution. Originally built as a pure furniture rental platform, Furlenco has evolved into a hybrid model combining rentals, outright sales, and offline retail stores. Product sales — furniture sold outright, not rented — more than doubled to Rs 21 Cr in FY25 from Rs 10 Cr in FY24, adding a capital-light revenue stream that carries higher gross margin than a rental contract requiring ongoing asset maintenance and logistics.
How Does Furlenco Compare to Competitors in the Furniture Space?
| Company | Model | FY25 Status | Key Development |
|---|---|---|---|
| Furlenco | Subscription rental + sale | Rs 240 Cr revenue; Rs 3.1 Cr PAT; first-ever profit | Rs 125 Cr raised Dec 2025; IPO roadmap active |
| Rentomojo | Furniture and electronics rental | Rs 40 Cr net profit (provisional FY25); Rs 82% PAT growth YoY | IPO by FY27; bankers IIFL and Motilal Oswal appointed |
| Pepperfry | Online furniture marketplace | Acquired by TCC Concept | Industry insiders describe it as a distress sale |
| Urban Ladder | D2C furniture brand | Reliance Retail subsidiary | Operating under Reliance’s omnichannel distribution |
Furlenco’s profitability comes amid a period of turmoil for the D2C furniture sector. Pepperfry, once valued at $350 Mn, was acquired by TCC Concept in what industry insiders describe as a distress sale. Meanwhile, Rentomojo — Furlenco’s closest direct competitor in the rental segment — is eyeing a public listing by FY27 and has already appointed IIFL and Motilal Oswal to lead its IPO process. Furlenco’s decision to also begin IPO preparation positions the two rental-first furniture platforms on a direct collision course in public markets — a dynamic that will force both to demonstrate sustainable profitability at scale, not just headline revenue growth.
What Did the December 2025 Funding Round Signal for Furlenco’s IPO Plans?
Furlenco secured Rs 125 Cr ($15 Mn) in fresh funding from Sheela Foam Limited in December 2025, with additional participation from White Oak Capital and investor Madhu Kela. The company said the new capital will support its plan to broaden its product portfolio, scale omnichannel distribution, and strengthen operations as it gears up for public-market readiness. Furlenco is working toward a potential IPO in the coming years as part of its long-term roadmap.
Separately, in March 2025, the company raised Rs 60 Cr in debt through non-convertible debentures from Northern Arc and CredAvenue. The combination of equity from Sheela Foam and NCD debt suggests a deliberate capital structure management strategy — using cheaper debt for working capital and asset financing, while keeping equity dilution reserved for strategic growth investments ahead of a public market debut.
What’s Next
The question for FY26 is whether Furlenco can sustain double-digit revenue growth without sacrificing the cost discipline that produced its first profit. Depreciation rose 28% to Rs 44.5 Cr in FY25 as the company added new furniture inventory to support growth — a pattern that will continue as subscriber counts expand. If rental revenue growth outpaces depreciation growth, the unit economics remain intact. Watch for Furlenco’s FY26 interim numbers — specifically whether EBITDA margin holds above 20% and whether operating cash flow crosses Rs 75 Cr. Those two figures will determine whether the company files a DRHP before Rentomojo does. Will Furlenco become India’s first furniture rental unicorn via a public listing — or will Rentomojo beat it to Dalal Street?
Frequently Asked Questions
What revenue and profit did Furlenco report in FY25?
Furlenco Turns Profitable in FY25 with total income of Rs 240 Cr — up 59% from Rs 151.9 Cr in FY24 — and a net profit of Rs 3.1 Cr, marking the company’s first-ever annual profit in its 13-year history. Operating revenue grew 64% to Rs 228.7 Cr, driven by a 61% jump in subscription rental income to Rs 208 Cr and a doubling of product sales to Rs 21 Cr. Total expenses fell 16% to Rs 236.9 Cr, producing a Rs 133 Cr swing from the Rs 130.2 Cr net loss recorded in FY24.
What does Furlenco do and who are its investors?
Furlenco is a Bengaluru-based subscription furniture and home appliance rental platform founded in 2012 by Ajith Mohan Karimpana. It offers 300-plus SKUs across 28 Indian cities through its parent company House of Kieraya Ltd, which also operates refurbished furniture platform Furbicle and the unlimited subscription service UNLMTD. Key investors include Sheela Foam — the Sleepwell parent, which holds approximately 45.5% and invested Rs 125 Cr more in December 2025 — along with Lightbox Ventures, White Oak Capital, and Madhu Kela. Total funding raised stands at approximately $298 Mn.
Is Furlenco planning an IPO?
Yes. Furlenco has confirmed it is working toward a potential IPO as part of its long-term roadmap, with the December 2025 funding round from Sheela Foam explicitly described as a step toward public-market readiness. The company has not yet appointed bankers or filed a DRHP. Its closest competitor Rentomojo has already appointed IIFL and Motilal Oswal as IPO bankers and is targeting a listing by FY27. Furlenco’s FY25 profitability and positive operating cash flow of Rs 50.8 Cr materially strengthen its case with SEBI and institutional investors ahead of any IPO filing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Dr.Mayank Raj. Published: April 30, 2026. Updated: April 30, 2026. Have a tip? Write to us at editorial@startupfeed.in.
