Furlenco – FY26 Revenue Crosses ₹370 Crore, Profit Jumps 19X

Bengaluru-based furniture rental platform Furlenco has reported a standout FY26 — revenue from operations rose 62% to ₹370.43 crore, while net profit surged 19.1 times to ₹59.52 crore, smashing the company's own internal guidance of ₹35–37 crore in profit and ₹350–370 crore in revenue.

To put the profit figure in perspective: just two years ago, in FY24, Furlenco was reporting a net loss of ₹130.2 crore. It turned profitable for the first time ever in FY25 with a modest ₹3.11 crore. Now at ₹59.52 crore, the trajectory isn't just a turnaround — it's an acceleration.

Rental remains the engine

Rental services contributed 92% of operating revenue in FY26, with rental income growing 64% year-on-year to ₹341.07 crore. Product sales (outright furniture purchases) added ₹29.36 crore, up 38% YoY — a smaller but growing revenue stream as the company expands its premium catalogue for customers who want to buy rather than rent.

The subscription-first model — where customers get fully furnished homes delivered within 72 hours — continues to drive high revenue predictability, with recurring rental income providing cash flow visibility that most D2C furniture businesses lack.

Profitability metrics are the real story

Beyond the headline profit number, the underlying unit economics tell a compelling tale. EBITDA nearly doubled to ₹129.5 crore, and ROCE climbed to 13.17% from 5.37% in FY25 — a significant jump for a business that was deeply loss-making until recently.

Perhaps the most telling metric: Furlenco spent just ₹0.93 to generate every ₹1 of operating revenue in FY26, improving from ₹1.03 in FY25. Crossing below the ₹1 mark means the core business is now generating operating surplus on every rupee earned — a threshold the company couldn't breach for over a decade.

Balance sheet strengthening

Cash and bank balances more than doubled to ₹75 crore, while current assets rose nearly 68% to ₹178 crore — providing a comfortable buffer for the company's planned expansion into new cities and verticals like Furlenco Kids and premium furnishing packages.

The improved financial position also comes after a ₹125 crore funding round in late 2025 from promoter Sheela Foam (Sleepwell brand), White Oak Capital, and veteran market investor Madhu Kela.

IPO on the horizon

Furlenco has been vocal about its IPO ambitions, with plans to file its DRHP after FY27. The company has previously indicated it wants to hit ₹90–100 crore in net profit before going public — and at the current growth rate, that target looks well within reach.

The listing would make Furlenco a direct comparable to Rentomojo, which has already filed for its IPO and reported FY25 revenue of ₹266 crore. With FY26 revenue at ₹370 crore and a significantly stronger profit profile, Furlenco would enter the public market as the larger and more profitable of the two furniture rental platforms.

The bigger picture

Furlenco's trajectory is one of the more remarkable turnaround stories in India's consumer startup ecosystem. Founded in 2012 by Ajith Mohan Karimpana, the company spent over a decade burning through capital — raising over $300 million — before finding its footing. The 2023 acquisition by Sheela Foam proved to be the inflection point, bringing operational discipline and balance sheet support that enabled the pivot from growth-at-all-costs to profitable scaling.

In a segment where competitor Pepperfry was sold in what was widely seen as a distress deal and others have shut down entirely, Furlenco's FY26 numbers stand out as proof that the subscription-based furniture model can work in India — when paired with cost discipline and the right strategic partner.