Furniture rental startup Furlenco has achieved a major financial milestone by reporting its first-ever annual profit in FY25, marking a significant turnaround from the steep losses recorded in the previous fiscal year. The Bengaluru-based company posted a net profit of INR 3.1 crore, a sharp recovery from the INR 130.2 crore loss in FY24, highlighting its successful business transformation and strategic focus on profitability.
A Remarkable Turnaround for Furlenco
Founded in 2012 by Ajith Mohan Karimpana, Furlenco operates on a subscription-based furniture rental model, allowing customers to rent high-quality furniture and home appliances. Over the years, the company has become one of India’s leading players in the furniture rental space, catering to young professionals and urban households across major cities including Bengaluru, Mumbai, Delhi NCR, Chennai, and Kolkata.
In FY25, Furlenco’s operating revenue rose 61% year-on-year (YoY) to INR 208 crore, compared to INR 129 crore in FY24. The bulk of this came from its furniture rental services, which accounted for 91% of total operating income. Additionally, product sales—including furniture items such as sofas, beds, and tables—also saw a major surge, more than doubling YoY to INR 21 crore.
When factoring in other income of INR 11.3 crore, Furlenco’s total income reached INR 240.1 crore, up from INR 151.9 crore in FY24, indicating healthy growth across all verticals.
Premium Furniture: The Key to Profitability
The driving force behind Furlenco’s turnaround has been its increased focus on premium furniture offerings. According to the company, 30–40% of its product portfolio now falls under the premium category, with items priced about 50% higher than market competitors. This strategic shift has allowed Furlenco to improve its profit margins while catering to a more affluent customer base that values design, durability, and convenience.
The premium furniture segment alone contributed roughly 40% of Furlenco’s overall revenue, underscoring its importance in the company’s profitability journey. By emphasizing higher-value products and longer subscription durations, Furlenco has not only differentiated itself from competitors but also strengthened its brand positioning in the premium rental market.
Expanding Presence and Product Offerings
Furlenco currently offers over 300 SKUs (stock keeping units) across a variety of home categories including living room, bedroom, dining, and workspace furniture. Its flexible rental plans and seamless delivery experience have made it a preferred choice for millennials, working professionals, and families looking for affordable yet stylish furnishing solutions.
The startup’s presence across 28 Indian cities demonstrates its scalability and growing footprint in India’s evolving furniture-as-a-service (FaaS) market.
The Road Ahead
Furlenco’s shift to profitability in FY25 marks a new chapter in the company’s growth story. The success of its premium-focused strategy and efficient operational model sets a strong foundation for future expansion. Moving forward, Furlenco is expected to continue investing in technology, design innovation, and customer experience, while exploring new business models and markets.
As India’s furniture rental industry continues to mature, Furlenco’s profitable performance positions it as a leader in the subscription economy, paving the way for sustainable growth and long-term success.
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