Subscription-based furniture rental company Furlenco recorded a 10% year-on-year dip in operating revenue in FY24, with its overall losses holding steady compared to the previous year.
According to its filings with the Registrar of Companies (RoC), Furlenco’s revenue from operations fell from Rs 155.78 crore in FY23 to Rs 139.56 crore in FY24. Established eight years ago, Furlenco offers rental furniture, home decor, and relocation services, with furniture rentals and sales comprising the core of its revenue stream.
Beyond operating income, Furlenco generated an additional Rs 12.34 crore through interest and gains on financial assets, taking its total revenue for FY24 to Rs 151.9 crore.
On the expense side, rental payments emerged as the largest cost at Rs 48.83 crore, followed by employee benefits, which saw an 8.36% increase, totaling Rs 47.78 crore. The company’s investment in furniture and appliances led to a rise in depreciation expenses, which climbed from Rs 29.5 crore in FY23 to Rs 34.89 crore in FY24. Furlenco also managed to cut its finance costs by 52%, bringing them down to Rs 32.12 crore as it streamlined its debt obligations. Other expenses included Rs 27.71 crore for advertising and promotions, Rs 16 crore for repairs and maintenance, and Rs 10.63 crore for transportation.
In total, Furlenco’s expenses saw a slight reduction, totaling Rs 282.12 crore for FY24. Despite the drop in revenue, Furlenco’s net losses only saw a small increase, reaching Rs 130.22 crore. The company’s Return on Capital Employed (ROCE) and EBITDA margins remained in negative territory, at -223.36% and -44.61%, respectively. Operationally, Furlenco spent Rs 2.02 to generate each rupee of revenue in the last fiscal year. The firm’s current assets amounted to Rs 89.58 crore, with Rs 35.37 crore in cash and bank balances.
In a significant development in July 2023, Sheela Foam, the parent company of Sleepwell, acquired a 35% stake in Furlenco for Rs 300 crore ($36 million), valuing the company at around $100 million.
Furlenco faces competition from companies like Rentomojo and Pepperfry. Notably, Rentomojo saw a 60% rise in its operating revenue in FY24, nearly reaching Rs 200 crore and posting a profitable year, while Pepperfry’s FY24 results are yet to be released.
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