Furlenco Achieves Profitability and Growth in FY25
After a subdued performance last fiscal year, Furlenco, a furniture rental company based in Bengaluru, has made an impressive recovery in FY25. The firm reported a 65% increase in revenue year-on-year while maintaining strict control over its expenses. Consequently, Furlenco declared a profit after tax (PAT) of Rs 3 crore for FY25, a stark contrast to a loss of Rs 130 crore recorded in FY24.
According to consolidated financial statements from the Registrar of Companies (RoC), Furlenco’s operational revenue surged to Rs 229 crore in FY25 from Rs 139 crore the previous year. Furlenco offers rental furniture and home decor, along with relocation services. Notably, 91% of the operating revenue stemmed from furniture rental services, which experienced a 61% growth to reach Rs 208 crore in FY25. The revenue from product sales, including items such as sofas and beds, more than doubled, hitting Rs 21 crore for the fiscal year ending March 2025.
When considering other non-operating activities like treasury gains of Rs 11 crore, the company’s total income increased to Rs 240 crore in FY25. Furlenco effectively streamlined its cost structure, managing to decrease its total expenses by 16% to Rs 237 crore in FY25 compared to Rs 282 crore in FY24. Employee benefit costs fell by 35% year-on-year, now standing at Rs 31 crore in FY25, while finance costs saw a significant drop of 41% to Rs 19 crore during the same period.
Although the cost of materials did rise 33% to Rs 8 crore, depreciation on the company’s furniture also increased by 29%, reaching Rs 45 crore in FY25 from Rs 35 crore in FY24. For an in-depth breakdown of expenses, refer to various sources.
With robust revenue growth and reduced expenses, Furlenco turned profitable, achieving a profit of Rs 3 crore in FY25, compared to a loss of Rs 130 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin significantly improved, standing at 5.68% and 24.45%, respectively. On a per-unit basis, Furlenco spent Rs 1.03 to earn every rupee of operating revenue, down from Rs 2.03 in FY24. The firm’s current assets amounted to Rs 106 crore, which includes cash and bank balances of Rs 32 crore in FY25.
As reported by various startup data intelligence platforms, Furlenco has secured a total of $298 million in funding to date, with Sheela Foam and Lightbox Ventures being the primary investors. The company’s founder and CEO, Ajith Mohan Karimpana, retains a 12% ownership stake.
Furlenco has evidently found a more effective strategy for its business, as such positive metrics appeared unlikely just a year ago. Although the concept has gained traction, operational costs had previously been too high for a promising turnaround. Therefore, commendations are due to the team for achieving this success.