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New Delhi: Furniture rental company Furlenco’s parent, House of Kieraya (HoK), expects to turn profitable in less than a year on the back of robust revenue flows, led by its furniture business.
After doubling the annualised revenue run rate to ₹200 crore in 2021, Furlenco aimed to touch ₹500 crore run rate in a year on the back of positive cash flows from operations.
To expedite the process, the furniture and lifestyle brand HoK is building a DIY-UT (Do-It-yourself-using-tech) business model and is also migrating to a leading ERP platform to run its internal processes. It is also working towards achieving excellence in customer service and exceeding the industry benchmarks of Net Promoter Score (NPS) for both Furlenco and Prava., according to its leadership team.
“We hope to turn profitable by March 2023. As a new-age startup, one should aim to create real shareholder wealth for the longer term which is why we have taken the decision to walk the path of profitability while focusing on growth in parallel," said Ajith Mohan Karimpana, founder and CEO, House of Kieraya (HoK) and Furlenco.
In 2021, the parent brand made some significant announcements as a part of its growth and category expansion strategy, such as the launch of a sub-brand of Furlenco, UNLMTD - an annual subscription service to furnish one’s entire home at one price, and luxury furniture and lifestyle brand.
Both these brands currently contribute to more than 10% of HoK’s total revenue. Going forward, HoK is looking to expand its services and provide customers with access, choice and change in the furniture and lifestyle category.
“People and their tastes are evolving according to their needs. At Furlenco, we aim to provide access to designer furniture at value-for-money prices and we believe that in the grand scheme of things, rental is just the first step and we are looking at other avenues to cater to a wider customer base," Karimpana added.