The valuation of House of Kieraya Pvt., the owner and operator of furniture rental platform Furlenco, has dipped to what it raised two years ago as valuation markdowns in start-ups continue.
The Bengaluru-based start-up sold off a 35% stake for Rs 300 crore to Sheela Foam Ltd., the manufacturer of Sleepwell mattresses.
That gives Furlenco an enterprise valuation of Rs 1,000 crore, which is what it raised in its Series D fundraise in July 2021. Furlenco offers living, dining, and bedroom furniture rental services, as well as furniture design and relocation services.
The acquisition by Sheela Foam is subject to customary working capital and other adjustments, according to an exchange filing on Monday. The acquisition is expected to be completed by Aug. 31.
Cumulatively, Furlenco has raised around Rs 1,880 crore. The sharp markdown for Furlenco comes at a time when several venture capital-backed tech companies see a drop in their valuations in private markets as access to capital becomes tighter and profitability becomes a priority for backers.
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