Furlenco posts Rs 140 Cr revenue in FY24, finance cost shrink 52%

Subscription-based furniture rental firm Furlenco has witnessed over 10% year-on-year fall in its operating revenue in the last fiscal year. At the same time, the firm’s losses remained flat in the same period.

Furlenco’s revenue from operations decreased to Rs 139.56 crore in FY24 from Rs 155.78 crore in FY23, its annual financial statements sourced from the Registrar of Companies (RoC) show.

The eight-year-old company provides furniture and home decor on rent along with relocation services. Income from furniture rentals and sales was the sole source of Furlenco’s revenue in the last fiscal year.

Apart from operating income, the company also earned Rs 12.34 crore from interest and gains on financial assets which brought its total revenue to Rs 151.9 crore in the fiscal year ending March 2024.

When it comes to expenses, rental emerged as the largest cost element with Rs 48.83 crore followed by employee benefits which grew 8.36% to Rs  47.78 crore in FY24. The company continued its investment in procuring furniture and appliances. As a result, its depreciation costs increased to Rs 34.89 crore in the last fiscal from Rs 29.5 crore in FY23.

Cost incurred by Furlenco on finance dropped 52% to Rs 32.12 crore in FY24 from Rs 66.89 crore, as the firm optimized its debt obligations. Advertising and promotional expenditure stood at Rs 27.71 crore while repair and maintenance costs stood at Rs 16 crore. Notably, Furlenco spent Rs 10.63 crore on transportation in the last fiscal year.

Ultimately, Furlenco’s total cost decreased marginally to Rs  282.12 crore in FY24. Despite fall in operating collections, Furlenco reported a marginal increment in its losses which stood at Rs 130.22 crore in FY24. Its ROCE and EBITDA margins remained negative at -223.36% and -44.61% respectively. On a unit basis, the company spent Rs 2.02 to generate every rupee of operating during the last fiscal year. The company had a total current assets of Rs 89.58 crore which includes Rs 35.37 crore of cash and bank balances

In July 2023, Sleepwell’s parent Sheela Foam acquired 35% stake in Furlenco for a cash consideration of Rs 300 crore ($36 million). The transaction valued Furlenco at around $100 million.

The company competes with Rentomojo and Pepperfry and a handful of others. Unlike Furlenco, Rentomojo’s operating scale grew 60% and neared the Rs 200 crore revenue mark in FY24. The Geetansh Bamania-led company was also profitable in the last fiscal year. Pepperfry has yet to disclose its FY24 financial results.