Furlenco, a revolutionary furniture rental firm, is going to great lengths to prove the worth of the rental market, an approach that is working for Indian millennials. With young professionals traveling frequently, seeking more opportunities, furniture simply makes sense, with people placing more emphasis on experiences rather than inanimate objects.
Supported by both consumers and industry folk, Furlenco has this week announced a substantial $30m fundraise. Consisting of $15 million of equity, led by Lightbox Ventures and Axis Capital and $15 million of debt, from banks, NBFCs, individuals and family offices, for a total sum of $30 million.
Changing the feel of the rental market the company have been dubbed the ‘Airbnb of the furniture world, employing a large team of expert designers, creating high-quality reclining chairs that are unique in style. Being easier to swap and replace than a smartphone the focus here is control, with Furlenco enabling renters to change the style of their home whenever they so wish.
“You shouldn’t rent because you need to rent, you should rent because you want to rent,” explains the Director, Karimpana.
Explaining their success Tech crunch states:
‘That plan seems to be working out because Furlenco has shipped $20 million worth of furniture to date to 15,000 homes. And despite that fast growth rate, furniture utilization remains above 95 percent, which means that the company doesn’t need large warehouses to store unrented items that are losing money.’
Let us know what you think about the business model, could be adopt such a service here in the UK? Leave your comments below.