Sleepwell-parent Sheela Foam has signed an agreement to acquire stakes in online furniture retailer Furlenco and mattress maker Kurlon Enterprises, the company said in a stock exchange filing.
The deal with Furlenco marks Sheela Foam’s entry into the rapidly growing online furniture e-commerce business.
Sleepwell proposes to acquire approx 35% stake in Furlenco for a cash consideration of Rs 300 crore which is subject to customary working capital and other adjustments. This roughly values the Bengaluru-based company at around Rs 857 crore (over $100 million).
The company further disclosed that it will acquire a majority stake (94.66%) in Kurlon Enterprises which owns Kurlon brand for Rs 2,035 crore. Post-acquisition, Kurlon will be valued at around Rs 2,150 crore ($260 million).
Six-year-old Furlenco provides subscription-based furniture and home decor on rent along with relocation services. Besides furniture and home appliances, Furlenco has also expanded its services to renting two-wheelers, gaming consoles, entertainment and fitness equipment as well. It operates in cities such as Bengaluru, Mumbai and Delhi NCR.
Backed by Zinnia Global Fund, CE-Ventures and Lightbox Ventures and actor Amir Khan, Furlenco has raised around $240 million across equity and debt rounds to date. It also includes a $140 million Series D round in July 2021.
As per Furlenco’s unaudited financials, it recorded Rs 152 crore in revenue during FY23. According to Fintrackr’s analysis, Furlencon’s revenue from operations surged 53.3% to Rs 129 crore during FY22, while its losses went up 73% to Rs 151.5 crore during the same period.
With investment in Furlenco, Sleepwell will now compete with new-age companies such as Rentomojo, Rentickle, Cityfurnish and Pepperfry.
