Furlenco Raises ₹60 Cr Debt from Northern Arc, CredAvenue
In a significant development, Furlenco, a leading furniture rental platform, has raised ₹60 crore in debt funding from Northern Arc Capital and CredAvenue. This major infusion of capital will enable Furlenco to further accelerate its growth plans, expand its operations, and strengthen its position in the market.
The debt funding was raised through two series of non-convertible debentures (NCDs). The first series saw Furlenco allot 500 NCDs with an issue price of ₹10 lakh each to Northern Arc, raising ₹50 crore. The second series involved the allotment of 40 NCDs with an issue price of ₹25 lakh each to CredAvenue, raising ₹10 crore.
Furlenco’s decision to raise debt funding is a strategic move aimed at strengthening its balance sheet and reducing its dependence on equity funding. The company has been growing rapidly, and this debt funding will provide it with the necessary resources to scale its operations and expand its offerings.
Founded in 2012, Furlenco is a pioneer in the furniture rental space, offering a wide range of furniture and home decor products to customers. The company has disrupted the traditional furniture purchasing model by providing a convenient and cost-effective alternative to buying furniture outright. Furlenco’s business model has resonated with customers, and the company has witnessed significant growth in recent years.
Furlenco’s debt funding from Northern Arc and CredAvenue is a testament to the company’s strong fundamentals and growth potential. Northern Arc Capital is a leading player in the Indian debt market, providing debt financing solutions to high-growth companies. CredAvenue, on the other hand, is a digital lending platform that offers debt financing solutions to small and medium-sized enterprises (SMEs).
The debt funding will be used by Furlenco to strengthen its balance sheet, reduce its debt-equity ratio, and increase its capacity to invest in growth initiatives. The company plans to use the funds to expand its operations, enhance its product offerings, and strengthen its presence in the market.
Furlenco’s success in raising debt funding from Northern Arc and CredAvenue is a significant milestone in the company’s journey. The debt funding will provide Furlenco with the necessary resources to achieve its growth objectives and strengthen its position in the market.
In conclusion, Furlenco’s ₹60 crore debt funding from Northern Arc and CredAvenue is a major development in the Indian startup ecosystem. The debt funding will enable Furlenco to accelerate its growth plans, expand its operations, and strengthen its position in the market. The success of Furlenco’s debt funding bid is a testament to the company’s strong fundamentals and growth potential, and it is expected to have a positive impact on the company’s future growth prospects.
Source: https://inc42.com/buzz/exclusive-furlenco-raises-7-mn-debt-from-northern-arc-credavenue/
