Home furnishing startup Furlenco expects to more than double its revenue to Rs 500 crore by March 2024 with foray into furniture sale business, a top official of the company said on Tuesday.
The company, whose investors include Bollywood actress Deepika Padukone, expects to close the current fiscal with Rs 200 crore revenue, House of Kieraya (HoK) and Furlenco, founder and CEO Ajith Mohan Karimpana told PTI.
"Furlenco is now going to start selling furniture to this new customer segment. Customers can now buy our brand new designer furniture and then regardless of whether you use it for a short term like one to two years or you want to use it for 4-5-6 years and still sell it back to Furlenco at a predetermined price," he said.
Furlenco is present in the business of furniture rentals across six cities -- Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, and Pune.
The company plans to start service of furniture sales in these cities and expand to other cities later.
"We could grow more but we are choosing not to grow more because the entire focus is on profitability. We are just about to get free cash flow positive. With the advent of this new side of the business, we will be able to get cash-free and profitable much faster and that is our focus this year. We will be closing at Rs 200 crore revenue in 2022-2023 and we will be closing 2023-2024 at Rs 500 crore," he said.
With the focus on profitability, the company will continue to strengthen business in the existing cities, Karimpana said.
"We have realized that expanding into other cities always puts a dent into profitability. Profitability is a key mantra for us. There is enough market in these existing six cities. In the next one year we may open in a couple of cities but that is not the highest priority, the bigger higher priority is to give the basket of access," he said.
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