The latest round has seen venture capital firm Lightbox, and Dabur scion Saket Burman, who has invested through his personal investment arm Chowdry Associates, put in equity financing.
Separately, a host of ultra-high-net-worth individuals including Kris Gopalakrishnan, former chief executive of Infosys, and Gautham Radhakrishnan, a former partner with private equity firm Tata Capital, have provided debt financing through the issuance of non-convertible debentures (NCDs) by the company.
Additionally, Bollywood superstar Aamir Khan, also an existing investor in Furlenco, has also participated in the latest round, which, overall, is an equal split between debt and equity capital, and the process for which kickstarted in November last year.
Waterfield Advisors, DPNC Advisors, and Quadito acted as advisors to Furlenco.
Till date, Furlenco, which was founded in 2012 by former Goldman Sachs and Morgan Stanley executive Ajith Mohan Karimpana, has raised an estimated $43 million in equity funding, and about $45 million in debt financing. Of the latter, the company has paid off about $20 million so far.
“Furlenco is already operationally profitable and this round will further help us progress on our goal of becoming fully profitable in the next 12-18 months,” Karimpana told ET. The funding round values Furlenco at a shade less than $100 million.
The subscription-based online rental furniture platform, which provides furniture, home decor and home appliances on rent, has, since inception, served an estimated 110,000 customers, and is present in eight cities across the country.
“While the ongoing Covid-19 pandemic has definitely impacted all of us, Furlenco’s subscription business model with monthly recurring revenue allows us to be a lot more resilient than many of the other startups who are seeing their monthly revenues plummet significantly,” Karimpana said.
The company was among the early adopters of debt instruments such as NCDs to meet its financing needs even as startup equity funding slowed down in 2016-17. NCDs are typically defined as unsecured bonds that cannot be converted to company equity or stock, and usually have higher interest rates than convertible debentures, which can be converted into stock.