Furniture rental platform Furlenco, backed by Sheela Foam (44.6% stake), has posted its first-ever profit of ₹3.1 crore on ₹240 crore revenue in FY25, marking a major turnaround after years of losses. CEO Ajith Mohan Karimpana attributes the milestone to scale, operational maturity, and a manufacturing-first strategy. The company expects ₹340 crore revenue and 10% pre-tax profit in FY26, with plans to become debt-free in 2–3 years and target 20% margins through vertical integration in design, manufacturing, and refurbishing. A key differentiator is in-house production—100% of deployed furniture is now self-manufactured, cutting costs significantly (e.g., sofas made at ₹15,000 vs. vendor cost of ₹25,000) using premium materials like German machinery and durable wood. Furlenco leverages Sheela Foam’s 5,000-dealer network for an asset-light shop-in-shop model, aiming for 500 retail touchpoints in 18 months, avoiding high capex from standalone stores. It has also launched a B2B rent-to-own segment and is expanding into kids’ furniture, introducing modular, growth-adaptive designs for short-utility products like cribs and bunk beds. While rival Rentomojo eyes an IPO, Furlenco remains patient, aiming for three consecutive profitable years before considering public listing. Its focus remains on sustainable, margin-led growth through innovation, premiumisation, and smart distribution.

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