Furlenco, the Bengaluru-based furniture rental startup, has achieved a major milestone by turning profitable in the financial year 2024–25. After facing consistent losses in the previous years, the company reported a net profit of ₹3.1 crore in FY25, marking its first-ever profitable year. The turnaround is backed by a sharp rise in revenue and a well-planned business strategy that focused on premium offerings and efficient cost management.
The company’s total operating revenue jumped by 64%, reaching ₹228.7 crore in FY25 compared to ₹139.6 crore in FY24. This remarkable growth shows how Furlenco’s new business model has started to pay off, transforming the company from a struggling startup into a growing and sustainable brand.
Premium Furniture Becomes the Growth Engine
One of the main reasons behind Furlenco’s impressive comeback is its focus on premium furniture. The company strategically moved beyond the low-cost rental market and began offering high-quality, design-led furniture for modern urban homes. Nearly 30–40% of Furlenco’s products now fall under this premium category, and these are priced almost 50% higher than regular rentals.
This premium range alone contributes about 40% of Furlenco’s total revenue, proving that customers are willing to pay more for quality and convenience. By catering to working professionals, millennials, and families looking for comfort and flexibility, Furlenco has positioned itself as a lifestyle brand rather than just a rental service. This shift has helped the company attract long-term customers and boost profitability.
Strong Cost Control Drives the Turnaround
While higher revenue played a key role, Furlenco’s profitability is also the result of disciplined cost management. The company reduced its total expenses by 16%, bringing them down from ₹282 crore in FY24 to ₹236 crore in FY25. Employee costs saw a major cut of nearly 36%, while operating and logistics costs were also optimised.
These cost efficiencies allowed the startup to achieve healthy margins without compromising on service quality. Furlenco streamlined its operations, adopted smarter logistics, and leveraged technology to improve product tracking, delivery, and customer support. Together, these changes strengthened its business foundation and contributed directly to profitability.
Rentals Remain the Core of the Business
Despite its growing premium segment, furniture rentals remain at the heart of Furlenco’s business. Around 91% of the company’s revenue—approximately ₹208 crore—came from rental subscriptions in FY25. Direct furniture sales, such as beds, sofas, and wardrobes, brought in another ₹21 crore.
This shows that the rental model continues to work well in India, especially in metro cities where people move homes frequently for work or education. Renting furniture gives customers the freedom to enjoy comfortable living without the burden of ownership, which aligns perfectly with the modern lifestyle. Furlenco’s flexible plans and easy delivery options further make it an attractive choice for urban consumers.
Future Plans and Market Outlook
After achieving profitability, Furlenco is aiming higher. The company plans to reach ₹350 crore in revenue and around ₹35 crore in net profit by FY26. It also intends to file for an Initial Public Offering (IPO) in 2026, signalling confidence in its long-term growth.
To fuel expansion, Furlenco is exploring new cities and working on establishing premium experience centres where customers can see and test furniture before renting. The startup is also investing in technology and design innovation to create smarter, space-saving products for modern homes.
Furlenco’s journey from losses to profits is an inspiring story of innovation, resilience, and smart decision-making. It shows how a startup can evolve by understanding consumer needs, focusing on quality, and managing resources wisely. With its renewed vision and customer-first approach, Furlenco is well-positioned to grow stronger in India’s booming furniture rental market.