Sheela Foam, a maker of popular mattress brand Sleepwell, on Monday said it would acquire 35% stake in House of Kieraya, the parent company of furniture rental startup Furlenco for INR 300 Cr.
The acquisition will help Sheela Foam to enter the fast-growing branded furniture market. Furlenco is one of the leading champion in the furniture rental market and the acquisition will give Sheela Foam a significant strong foothold in this market.
Based on the acquisition price, House of Kieraya is now valued approx around INR 857 Cr. Furlenco last raised $140 Mn in its Series D funding round, comprising $120 Mn of venture debt and $20 Mn of equity funding.
The acquisition is a strategic step by Sheela Foam to expand its product portfolio and reach a wider customer base. The company is looking to tap into the growing demand for branded furniture in India.
In a statement, Sheela Foams senior executive said, "The acquisition of Furlenco is a significant milestone for Sheela Foam. It will help us to step in the branded furniture market and expand our product portfolio. We are confident that this acquisition will help us to grow our business and create value for our shareholders."
The acquisition is expected to close in the next few weeks but we also have heard that there are also possibilities that a larger chunk in Karlon can be acquired together in near about same time period.