The Busy Brains
7 Sept 2023
Bengaluru-based Furlenco Ventures into Offline Retail, Bringing Furniture Rentals and Purchases to Physical Stores
Furlenco, a furniture renting startup, has announced the launch of two offline stores in Bengaluru as part of its omnichannel growth strategy. The move signifies the company's commitment to enhancing customer experience and reaching customers through multiple channels.
Founded in 2012 by Ajith Mohan Karimpana, Furlenco primarily operates an online subscription-based furniture rental platform across major Indian cities like Bengaluru, Mumbai, and Delhi NCR. Additionally, it sells furniture through its marketplace.
The newly inaugurated offline stores aim to provide customers with a hands-on experience of Furlenco's products, enabling them to make informed purchase decisions. Similar to its app and website, these physical stores will offer both buying and renting options.
CEO Ajith Mohan Karimpana sees this as just the beginning of Furlenco's offline expansion efforts. The company plans to open more offline stores across major Indian cities in the future. These stores will feature a material library showcasing physical material swatches, miniature furniture designs, furniture joinery, and finished products.
This strategic shift towards an omnichannel approach follows Sleepwell's parent company, Sheela Foam, acquiring a 35% stake in Furlenco's parent company, House of Kieraya, for INR 300 crores.
Despite the growth in operating revenue, Furlenco reported a 71% increase in net losses, reaching INR 149 crores in FY22. In a cost-cutting effort aimed at achieving profitability, the company laid off approximately 180 employees in the previous year.
Furlenco competes with other furniture rental companies in the Indian market, including Rentomojo, Pepperfry, and Urban Ladder. Pepperfry recently announced securing $23 million in funding from existing investors as part of its growth strategy.
The move towards establishing offline stores indicates Furlenco's intention to cater to a broader customer base and provide a seamless, integrated experience for its users, both online and offline.