The furniture and appliance rental company Furlenco is reportedly targeting a valuation of around Rs 7,000 crore for the proposed public issue, following a sharp rise in revenue and profitability in FY26.
It is being said that Furlenco is all set for its IPO next year (FY28), wherein it is planning to raise money between Rs 1,000 crores and Rs 1,200 crores. The company from Bengaluru is looking for its valuation at around Rs 7,000 crores, but the final figure could be decided on how the market behaves.
ICICI Securities is expected to be appointed as an adviser for the proposed IPO.
What makes the timing notable is the change in Furlenco’s financial profile. The company, best known for renting furniture and appliances on a subscription basis, ended FY26 with significantly higher revenue as well as a steep improvement in profit.
Operating revenue climbed 61.9% year-on-year to Rs 370.4 crore in FY26, compared with Rs 228.7 crore a year earlier. Net profit rose to Rs 59.5 crore from Rs 3.1 crore, an increase of nearly 20 times.
Rental business remains at the heart of Furlenco
Despite expanding into furniture sales, rentals continue to account for the overwhelming majority of Furlenco’s business.
Furniture and office equipment rentals contributed about 92% of operating revenue in FY26. Rental income increased 64% to Rs 341.1 crore, while revenue from furniture sales grew 38% to Rs 29.4 crore.
That revenue mix gives a clearer picture of the business Furlenco may eventually take to public investors. Rather than depending heavily on outright furniture sales, most of its operating income continues to come from the rental model around which the company was originally built.
Furlenco’s EBITDA also nearly doubled, reaching Rs 129.5 crore in FY26 from Rs 66.4 crore in FY25. Its EBITDA margin expanded to 35.01% during the year.
Costs grew alongside the business. Total expenditure increased 45.1% to Rs 343.9 crore, compared with Rs 236.9 crore in the previous financial year.
From subscription furniture to a possible public listing
Founded in 2012 by Ajith Mohan Karimpana, Furlenco operates a subscription-led furniture and appliance rental platform. Its catalogue includes more than 300 SKUs across 28 cities, including Bengaluru, Mumbai, Delhi NCR, Chennai and Kolkata. The company also sells new furniture in addition to its rental offering.
The proposed IPO would follow a funding round completed in December 2025, when Furlenco raised Rs 125 crore in a round led by existing investor Sheela Foam, with participation from Whiteoak and Madhu Kela.
The money was intended for expansion in existing and new markets, alongside product innovation, technology and improvements to customer experience. Furlenco has raised more than $290 million to date from investors including Lightbox Ventures, Crescent Ventures, Whiteoak and Madhu Kela.
Furlenco’s IPO plan comes after RentoMojo listing
The company’s move towards the public markets also comes after rival furniture rental platform RentoMojo raised Rs 1,255.6 crore through its IPO.
RentoMojo’s issue was subscribed 72.88 times, while its shares listed on the NSE at Rs 482.45, representing a 19.42% premium over the issue price of Rs 404.
There are some important aspects in respect of Furlenco that need to change before it is final. It is scheduled to hold its IPO in FY28, and the exact valuation of the firm will be done near the time of the issue.
It would mark a new phase for a company that has spent more than a decade building its business around rented furniture and appliances. Its FY26 numbers suggest that rentals remain the engine of the company even as Furlenco prepares for a potentially much larger test in the public markets.
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