Quick Take
- Furlenco is planning a Rs 1,000-1,200 crore IPO in FY28 at a valuation of around Rs 7,000 crore.
- FY26 revenue rose 61.9% to Rs 370.4 crore, and net profit jumped 19-fold to Rs 59.5 crore.
- The issue will mix fresh capital with an offer-for-sale, and ICICI Securities is set to advise.
Furniture rental startup Furlenco is preparing a Rs 1,000-1,200 crore initial public offering for the next financial year. The Bengaluru-based company is seeking a valuation of around Rs 7,000 crore.
The plan was reported by the Economic Times, citing people aware of the matter. Furlenco has not confirmed the size publicly.
The timing is telling. Furlenco moves just days after rival Rentomojo listed on the market. That listing set the benchmark.
What is Furlenco planning?
Furlenco is planning a public issue of Rs 1,000-1,200 crore in FY28, according to the Economic Times report. The company wants a valuation near Rs 7,000 crore.
The issue will have two parts. One is a fresh capital raise. The other is an offer-for-sale by existing backers.
An offer-for-sale lets early investors sell part of their holding. That money goes to those investors, not to the company. A fresh issue brings new money into Furlenco itself.
The final valuation is not fixed. Furlenco said it will be decided closer to the IPO. It depends on market conditions and investor response during roadshows.
Furlenco is working with merchant bankers on the issue. The company is expected to soon appoint ICICI Securities as an advisor.
How strong are Furlenco’s finances?
Furlenco reported Rs 370.4 crore in revenue from operations in FY26. That is up 61.9% from the year before.
Net profit tells a sharper story. It jumped 19-fold to Rs 59.5 crore during the year. Furlenco turned profitable in FY25 and widened that profit in FY26.
Earnings before interest, taxes, depreciation and amortisation nearly doubled. This measure, called EBITDA, reached Rs 129.5 crore. That works out to an EBITDA margin of 35%.
The company operates across 28 cities. It rents furniture and appliances on a subscription model, and lists more than 300 product types.
Who backs Furlenco?
Furlenco is backed by listed company Sheela Foam. Sheela Foam owns the Kurlon and Sleepwell mattress brands.
Sheela Foam first invested in 2023. It put Rs 300 crore into Furlenco for a 35% stake.
Furlenco last raised Rs 125 crore in December 2025. That round came from Sheela Foam, WhiteOak and stock market investor Madhusudan Kela.
Earlier backers include venture capital firm Lightbox and Zinnia Global Fund. Founded in 2012, Furlenco has raised about $290 million in total.
Why does the Rentomojo listing matter?
Rentomojo is Furlenco’s closest rival in furniture rental. Its IPO was subscribed 73 times earlier this month.
The listing that followed was strong. Rentomojo debuted on September 17, 2026. A hot debut by one rental firm makes the case easier for the next.
Furlenco would be the second furniture rental startup to reach the public market. The sector is small, so two listings in one year is a real signal.
StartupFeed Insight
The number that matters here is the 35% EBITDA margin. Furniture rental has long carried a reputation for burning cash. A rental firm posting that margin at Rs 370 crore of revenue changes the debate. Sheela Foam’s 35% stake also gives this issue a listed anchor, which most new-age IPOs lack. Watch the fresh-versus-OFS split when the papers land. A heavy OFS would suggest backers cashing out rather than fresh growth capital. Expect the draft prospectus to surface in the first half of FY28, with pricing to follow the roadshow response.
— Avinash Mishra, Business Correspondent
What this means for you: If you invest, wait for the draft prospectus to see the fresh-versus-OFS mix and the audited numbers before judging the Rs 7,000 crore ask.
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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