Furlenco, a Subscription-based furniture rental firm, has witnessed a 10 percent year-on-year fall in its operating revenue in the last fiscal year. Consequently, the firm’s losses remained flat in the same period.
Having said that, Furlenco’s revenue pertaining to operations has decreased from INR 155.78 crore in FY23 to INR 139.56 crore in FY24. These annual financial statements were sourced from the Registrar of Companies (RoC) show.
If we speak of the company, it offers furniture and home decor on rent coupled with relocation services. Furniture rentals and sales garnered by this 8-year-old company has been the sole source of Furlenco’s revenue in the last fiscal year.
Furthermore, the company also earned Rs 12.34 crore from interest apart from operating income, while the gains on financial assets has brought the company’s total revenue to INR 151.9 crore in the fiscal year ending March 2024.
Speaking of the expenses, rental emerged as the largest cost element with INR 48.83 crore followed by employee benefits which grew 8.36 percent to INT 47.78 crore in FY24. The company continued its investment in procuring furniture and appliances. Hence, as a result, its depreciation costs have increased from INR 29.5 crore in FY23 to INR 34.89 crore in the last fiscal.
As the firm optimized its debt obligations, cost incurred by Furlenco on finance dropped 52% to Rs 32.12 crore in FY24 from Rs 66.89 crore. Advertising and promotional expenditure further stood at INR 27.71 crore while repair and maintenance costs stood at INR 16 crore. Also to note, Furlenco has spent INR 10.63 crore on transportation in the last fiscal year.
Overall, Furlenco’s total cost decreased marginally and stands at INR 282.12 crore in FY24. And despite a 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 also remained negative at -223.36 percent and -44.61 percent, respectively. The company spent INR 2.02 to generate every rupee of operating on a unit basis during the last fiscal year. Including INR 35.37 crore of cash and bank balances, the company had a total current assets of INR 89.58 crore.
In July 2023, Sleepwell’s parent Sheela Foam acquired a 35 percent stake in Furlenco for a cash consideration of INR 300 crore which comes around USD 36 million. The transaction valued Furlenco at around USD 100 million.
The company competes with Rentomojo and Pepperfry and a handful of others. Unlike Furlenco, Rentomojo’s operating scale grew 60 percent and neared the INR 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.
