Furnishings rental startup Furlenco has raised Rs 125 crore in a funding spherical led by present investor Sheela Foam, with participation from Whiteoak and Madhu Kela.

Sheela Foam, which owns the Sleepwell model, had secured its board approval final month to take a position as much as Rs 30 crore in Home of Kieraya, Furlenco’s dad or mum firm.

The contemporary capital will probably be used to deepen Furlenco’s presence in present markets, develop into new cities, and put money into product innovation, expertise and buyer expertise.

Based in 2012, the Bengaluru-based startup runs a subscription-driven furnishings and equipment rental platform throughout greater than 28 cities, together with Bengaluru, Mumbai, Delhi NCR, Chennai and Kolkata. It gives over 300 SKUs and likewise sells new and refurbished furnishings. Leases account for about 70 % of its income, home equipment contribute about 25 % and new furnishings round 5%.

Founder Ajith Mohan Karimpana stated the corporate now has a transparent path to profitability and scale and that the brand new spherical strengthens its place as it really works in the direction of constructing a public-market prepared enterprise. Furlenco is aiming for an IPO after FY27.

Furlenco claims to grew to become worthwhile in FY25 after reporting a internet revenue of Rs 3.1 crore in comparison with a lack of Rs 130.2 crore in FY24. Income rose 64% to Rs 228.7 crore in FY25, up from Rs 139.6 crore within the earlier 12 months.

The startup is concentrating on income of Rs 370 crore and revenue of Rs 37 crore within the ongoing monetary 12 months. It’s banking on its Furlenco Children vertical and progress amongst premium clients and goals to succeed in about Rs 100 crore in revenue earlier than submitting its IPO.