Lightbox invests $6 million in furniture rental firm Furlenco1 min read . Updated: 24 Mar 2015, 08:19 AM IST
Furlenco is looking at expanding to all the metro cities by 2019
Mumbai: Lightbox Ventures Management has invested $6 million in Bengaluru-based online furniture rental company Kieraya Furnishing Solutions Pvt. Ltd, said Sandeep Murthy, a partner with Lightbox.
The company owns and operates Furlenco.com.
“We are looking at using the funds for improving existing technology for mobile users, building and designing furniture and supply side operations that include logistics, and inventory management," said Ajith Mohan Karimpana, who founded Kieraya in 2012.
Students graduate from universities across various cities and ultimately relocate to five to six major cities for IT-based jobs. They take up a house on rent and furnishing the house with high quality products is a major cost concern. Renting furniture is a cheaper and convenient option for such professionals.
“Food and shelter are basic needs for everyone and we believe that furniture is an essential part of housing today. On an average it costs ₹ 3 lakh to furnish an apartment and this is a huge cost for young professionals. This leads to homes being under furnished," said Murthy.
The company since its inception has furnished over 600 homes and has an active subscriber base of 200 users. Users can rent furniture on the basis on a subscription model that depends on the number and kind of room to be furnished. This cost lies between ₹ 1,500 to ₹ 2,500 per room per month. Currently, Furlenco employs 40 people and its services are available only in Bangalore. It is looking at expanding to all the metro cities by 2019.