Furlenco Secures ₹125 Cr Equity from Sheela Foam & WhiteOak for Expansion, Aims for IPO After FY25 Profit

Furniture and home-lifestyle firm Furlenco has secured ₹125 crore in fresh equity from Sheela Foam, with participation from investors including WhiteOak and Madhu Kela, the company said on Wednesday.

The capital injection comes as the Bengaluru-based subscription furniture player prepares for accelerated expansion and signals ambitions for a potential initial public offering in the coming years.

Furlenco said the new funds will be used to strengthen its foothold in existing cities, enter new high-potential markets across India and deepen investments in product innovation, technology and customer experience. Management also plans to use the capital to shore up its supply chain and broaden its offline and omnichannel distribution to reach more urban consumers.

Financial Turnaround

The round follows a year of financial recovery for the company: Furlenco reported revenue of ₹240 crore and a small profit of ₹3 crore in FY25, rebounding from a loss of ₹139 crore in FY24. The company credited its asset-light, subscription-led model and tighter capital discipline for the turnaround.

Furlenco said it now serves more than 1.5 lakh active subscribers and has furnished over one million homes since launching in 2012 — figures the company points to as validation of its rental and purchase offerings for both renters and homeowners.

Leadership View

Founder and CEO Ajith Mohan Karimpana described the raise as a catalyst for the “next phase” of growth, saying the capital will help Furlenco expand its reach while maintaining a clear path to profitability and preparing the business for public markets over time.

Sheela Foam’s investment adds a manufacturing and retail-backed strategic partner to Furlenco’s cap table, while participation from financial and industry investors such as WhiteOak and Madhu Kela underscores continued institutional interest in asset-light consumer models that combine recurring revenue with physical distribution.

Start-Up’s Focus

Executives said the focus will be on scaling categories across furniture and home lifestyle products, accelerating omnichannel availability (including more offline selection points) and improving unit economics through supply-chain efficiencies and product-led differentiation.

Founded in 2012, Furlenco has raised multiple rounds of equity and debt from investors including Lightbox Ventures, Crescent Ventures and others, and has pursued a mix of rental, direct-sale and refurbished-product propositions as it seeks to capture demand from urban consumers who prefer flexible home solutions.