SUMMARY
- Furlenco’s revenue from operations fell by 10% YoY to Rs 139.56 crore in FY24.
- Furlenco’s total expenses decreased slightly to Rs 282.12 crore in FY24.
- The company reported a slight increase in its losses, reaching Rs 130.22 crore in FY24.
Subscription-based furniture rental business Furlenco‘s revenue from operations fell by 10% YoY to Rs 139.56 crore from Rs 155.78 crore in FY23, according to its annual financial reports accessed from the Registrar of Companies (RoC).
Furlenco offers furniture and home decor on lease along with services for moving. The company’s primary source of income in the last fiscal year was from renting out furniture and selling it.
The eight year old firm also made Rs 12.34 crore from interest and profits on its investments, taking its total income to Rs 151.9 crore in FY24.
Rental was the biggest expense, amounting to Rs 48.83 crore, followed by employee benefits which increased by 8.36% to Rs 47.78 crore in FY24. The company continued to invest in buying furniture and appliances, leading to a rise in depreciation expenses from Rs 29.5 crore in FY23 to Rs 34.89 crore in FY24.
Finance cost decreased by 52% to Rs 32.12 crore in FY24 from Rs 66.89 crore in FY23, as the company managed its debt obligations. Advertising and promotional expenses stood at Rs 27.71 crore, and repair and maintenance costs were at Rs 16 crore in the period. Furlenco spent Rs 10.63 crore on transportation in FY24.
Furlenco’s total expenses decreased slightly to Rs 282.12 crore in FY24. Despite a decrease in its operating income, the company reported a slight increase in its losses, which amounted to Rs 130.22 crore in FY24.
Its ROCE and EBITDA margins remained negative at -223.36% and -44.61%, respectively. On a per-unit basis, the company spent Rs 2.02 to generate a rupee of operating income in FY24. The company’s total current assets stood at Rs 89.58 crore, which included Rs 35.37 crore in cash and bank balances.
In July 2023, the parent company of Sleepwell, Sheela Foam, acquired a 35% stake in Furlenco for a cash consideration of Rs 300 crore or $36 million. This deal valued Furlenco at around $100 million.
The company’s prominent competitors are Rentomojo and Pepperfry among others. Unlike Furlenco, Geetansh Bamania-led Rentomojo saw its operating revenue jump 60% and nearly reached a revenue of Rs 200 crore in FY24. The company was also profitable in the same period. Pepperfry has not yet shared its financial results for FY24.
