House of Kieraya Limited (Furlenco)

Business Model Furlenco operates a multi-brand home solutions ecosystem built around a "rent–refurbish–resale" asset strategy, rather than a single rental product line. It covers furniture, appliances, and soft furnishings across both online and offline channels, and includes: Furlenco (Core Rentals): Flexible furniture and home appliance rental plans for individuals and households — no upfront ownership cost, with options to extend, swap, or buy. UNLMTD: A subscription-based package offering unlimited/bundled access to home furnishing products for a recurring fee. Furbicle: A resale vertical for refurbished furniture — extends asset life and monetizes returned/used inventory. Prava: A premium, luxury designer furniture collection with a buy-back program, targeting a higher-end customer segment. Core operating logic: Assets (furniture/appliances) are purchased once, rented out repeatedly across multiple customers over their useful life, refurbished when returned, and finally resold — maximizing utilization and lifetime value per asset before disposal. Revenue Model Furlenco/HKL generates revenue through three primary streams: Recurring Rental Income — Monthly/subscription fees from furniture and appliance rentals (Furlenco core + UNLMTD plans). This is the primary and most predictable revenue stream. One-Time Sales Income — Sale of new and refurbished furniture/appliances (via Furbicle), and premium designer pieces (via Prava), including buy-back linked transactions. Value-Added Services — Ancillary services layered on top of the rental/sale relationship (e.g., logistics, styling, buy-back execution). Financial Performance (INR Crores) Particulars FY23 FY24 FY25 FY26 Operational Revenue 156.78 139.56 228.74 370 Operational Profit -62.20 -110.44 10.42 129 Profit After Tax -128.38 -130.22 3.11 59.55 Shareholders' Funds -229.84 -25.06 82.85 266 Key trend: The company turned operationally profitable in FY25 after two loss-making years, with continued margin improvement into H1 FY26 — revenue nearly doubled between FY24 and FY25. Founders / Board of Directors (As per company records; roles not individually specified in source documents) Ajith Mohan Karimpana — Founder & Director (widely recognized as Furlenco's founder) Rahul Gautam Tushar Gautam Ravindra Dhariwal Sandeep Murthy Meena Jagtiani Recent Fundraise & Valuation An Independent Valuation Report (dated 9 October 2025, by Registered Valuer Anjan Babu S, ICAI Membership No. 241590) determined the Fair Value per Dilutive Equity Share at INR 149 as on the valuation date of 30 September 2025, using the Income Approach – Discounted Cash Flow (DCF) methodology. Valuation Summary (INR Crores) Particulars Value PV of Explicit Period Cashflows 539 Discounted Terminal Value 488 PV of Future Cashflows to Equity 1,027 Fair Value of Equity 1,049 Total Dilutive Equity Shares 7,03,48,889 Fair Value per Share INR 149 Key Valuation Assumptions Cost of Equity (via CAPM): 23.81% (Risk-free rate 6.65% + Equity Risk Premium 7.26% + 10% additional risk premium; Beta = 1) Terminal Growth Rate: 5% Effective Tax Rate: 25.17% Recent Equity Allotments (PAS-3 Filings) Date Type Price (INR) No. of Shares 30 Nov 2025 Equity Shares Without Differential Rights 35.00 23,44,267 17 Nov 2025 Equity Shares Without Differential Rights 90.00 60,28,125