Sheela Foam, the parent company of Sleepwell, has agreed to buy shares of Kurlon Enterprises, a company that makes mattresses, and Furlenco, an online furniture retailer.
Sheela Foam has entered the quickly expanding online furniture e-commerce market due to the deal with Furlenco.
Subject to customary working capital and other adjustments, Sleepwell offers to pay a cash consideration of Rs 300 crore for approximately a 35% stake in Furlenco. This places the Bengaluru-based business’s value at roughly Rs. 857 crore (more than $100 million).
The company also revealed that it would pay Rs 2,035 crore to buy a majority (94.66%) stake in Kurlon Enterprises, the company that owns the Kurlon brand. Kurlon will be worth approximately Rs 2,150 crore ($260 million) after the acquisition.
Furlenco, a six-year-old company, offers moving services as well as furniture and home décor on a subscription basis. Furlenco has expanded its services to include renting two-wheelers, gaming systems, entertainment equipment, and home appliances in addition to furniture and household appliances. Cities like Bengaluru, Mumbai, and Delhi NCR are served by it.
Amir Khan, CE-Ventures, Lightbox Ventures, Zinnia Global Fund, and others support Furlenco, which has raised about $240 million in equity and debt rounds to date. Additionally, a $140 million Series D round will be included in July 2021.
Furlenco reported revenue of Rs 152 crore in its unaudited financial statements for FY23. Media analysis shows that during FY22, Furlencon’s operational revenue increased by 53.3% to Rs 129 crore while its losses increased by 73% to Rs 151.5 crore.
As a result of its investment in Furlenco, Sleepwell will now face off against modern businesses like Rentomojo, Rentickle, Cityfurnish, and Pepperfry.