Furlenco, a furniture rental brand based in Bengaluru, has made a strong recovery. After a loss of ₹130 crore last year, the company reported a profit of ₹3 crore this fiscal year.
The direct-to-consumer startup’s revenue increased by 65% year-over-year, from ₹139 crore to ₹229 crore. This growth shows the strength of brands that are adapting to consumer needs using efficient strategies.
As a leader in India’s furniture rental market, Furlenco provides furniture and home décor for rent, along with relocation services. Rental income made up 91% of its operating revenue, reaching ₹208 crore, a 61% increase from last year. Sales of products like sofas and beds more than doubled to ₹21 crore.
Furlenco’s turnaround is mainly because of cost control and improved operations. Total expenses decreased by 16%, from ₹282 crore to ₹237 crore. Employee costs were cut by 35%, and finance costs by 41%. The company now has a positive cash position with ₹32 crore in bank balances.
This recovery is important for the broader industry in India. It shows how brands are shifting from aggressive scaling to sustainable profitability. Furlenco, backed by investors like Sheela Foam and Lightbox Ventures, has raised $298 million to date, with CEO Ajith Mohan Karimpana holding a 12% stake.
Furlenco’s success shows resilience in India’s startup scene, where many brands are moving from high spending to efficient operations. The company’s FY25 performance is a positive sign for other startups looking to succeed in India’s competitive furniture and home-living market.
As the ecosystem matures and consumer confidence in rental models increases, Furlenco’s comeback confirms that smart restructuring, brand focus, and cost management can help businesses become profitable.
