Furniture and appliance rental startup Furlenco is preparing for an initial public offering (IPO) targeting ₹1,000-1,200 crore, aiming for a valuation of around ₹7,000 crore. The Bengaluru-based company plans to launch the IPO in fiscal year 2028 and is expected to appoint ICICI Securities as its advisor for the public issue, according to inc42.com.
The IPO plans follow Furlenco's profitability milestone in FY25 and continued growth in FY26. Founded in 2012 by Ajith Mohan Karimpana, the startup operates a subscription-based rental platform offering over 300 SKUs across 28 cities, including major metros like Bengaluru, Mumbai, and Delhi NCR. Its operating revenue surged 61.9% to ₹370.4 crore in FY26 from ₹228.7 crore the previous year, while net profit jumped nearly 20 times to ₹59.5 crore from ₹3.1 crore in FY25, inc42.com reported.
Furlenco's EBITDA nearly doubled to ₹129.5 crore in FY26 from ₹66.4 crore in FY25, with its EBITDA margin expanding to 35.01%. The rental segment, including furniture and office equipment, accounts for approximately 92% of the company's revenue. The IPO announcement comes shortly after rival RentoMojo's strong stock market debut, highlighting growing investor interest in the furniture rental sector.
The final valuation and issue size will be determined closer to the IPO based on market conditions and investor feedback during roadshows. Furlenco's move to go public marks a significant step in its growth trajectory as it seeks to capitalize on the expanding rental market in India.