- House of Kieraya, renowned for its furniture and lifestyle rental business Furlenco, said on Tuesday that it has entered into a $15 million asset finance agreement with TradeCred.
- Furlenco, an online furniture rental company, has launched House of Kieraya, an umbrella brand that will feature Furlenco as a sub-brand.
- HoK will be a brand house, and any new brand offering, such as the one set to launch next month.
- By 2026, the umbrella organization hopes to generate Rs 2,500 crore in income.
House of Kieraya, renowned for its furniture and lifestyle rental business Furlenco, said on Tuesday that it has entered into a $15 million asset finance agreement with TradeCred, India’s largest alternate debt platform. This transaction involved eight big family offices. Furlenco is a furniture rental business that provides high-quality, in-house-designed furniture. The furniture is delivered free of charge to the customer’s door within 72 hours, and the firm offers services such as annual cleaning, the possibility to switch furniture, and free relocation.
Furlenco, an online furniture rental company, has launched House of Kieraya, an umbrella brand that will feature Furlenco as a sub-brand, furniture subscription service Unlmtd, and remanufactured furniture provider Furbicle.
“We think that no single model can serve the whole furniture industry. With HoK, we’re attempting to create a type of continuity for the furniture demands of many sectors and phases of life. According to Ajith Mohan Karimpana, Founder and CEO of House of Kieraya, rental, subscription, e-commerce, and retail brands are the way forward in this journey (HoK).
Future Goals of HoK
HoK will be a brand house, and any new brand offering, such as the one set to launch next month, will be a part of it. By 2026, the umbrella organization hopes to generate Rs 2,500 crore in income. It also intends to grow to 25 cities during the next three years, up from 13.
Users may now hire specific pieces of furniture, similar to how Furlenco works. If they need numerous pieces of furniture, such as a buffet, they may go to Unlmtd, which can equip a three-bedroom flat. They may hire out 15 pieces of furniture for about Rs 70,000 per year. The firm is now introducing a Rs 4,000 monthly plan for consumers who wish to rent nine pieces of furniture, including a dining set, beds with mattresses, and chairs and tables.
From rentals to resale
Under Furbicle, HoK would acquire old furniture and even unboxed products (such as Amazon, Flipkart, and other e-commerce returns), recreate them and offer them at 25%-30% lower rates than Urban Ladder or Pepperfry. Karimpana says that the offering is also superior to purchasing through listed platforms such as Quikr or OLX.
The firm claims to be able to cover the full furniture industry — from rentals to resale — because it has built the necessary knowledge base and expertise, in addition to having its own logistics, warehouses, and design team. The remanufacturing will take place at the company’s warehouses. According to Karimpana, the firm is already at 173 percent of pre-Covid-19 levels.
Hardik Shah, Founder of TradeCred, commented on the investment, saying, “The furniture and appliances rental market is one of the most robust asset classes for investors since customers are shifting to subscription-driven models throughout the epidemic.”
Furlenco is the industry leader and fastest-growing firm in the area, therefore TradeCred is excited to collaborate with HoK to scale effectively with an asset-light strategy. TradeCred, which was formed in 2018, has so far deployed $250 million. TradeCred has worked with over 50 businesses to help them expand quicker with an asset-light strategy.
“We are experiencing extraordinary growth that has exceeded our expectations,” said Vaibhav Laddha, Head of Corporate Finance at House of Kieraya (HoK). Their collaboration with TradeCred will help drive the asset demand that will result from our aggressive development and expansion ambitions. They have witnessed a 100 percent increase in the last six months and expect another 100 percent increase in the next six months.