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House of Kieraya (HoK) the parent of Furlenco, India's lifestyle and furniture brand is on its path to profitability. Furlenco in the last year has doubled its Annualised Revenue Run rate (ARR) from Rs 100 crore to an ARR of Rs 200 crore.

The company also has started generating positive cash flows from operations and aims to hit a Rs 500 crore revenue run rate in a year.

Built on strong moats of technology, design, refurbishment and customer experience, Furlenco aims to become free cash positive by the first quarter of next year and aims to become profitable in a year.

While a majority of the revenue is attributed to Furlenco, HoK made noteworthy announcements last year as part of its growth and category expansion strategy.

The company launched a sub-brand of Furlenco, UNLMTD - an annual subscription service to furnish one’s entire home at one price, and Prava - a luxury furniture and lifestyle brand.

These brands have been scaling up steadily and contributing to more than 10% of HoK’s revenue.

The company is now evolving to cater to a larger audience, and provide access, choice and change in the furniture and lifestyle category.

HoK targets:

  • Become free cash positive by March 2023 and hit a Rs 500 crore revenue run rate in a year.
  • Become a tech-driven company with million dollar investment. In order to expedite this process, the company has already taken necessary steps towards building a state-of-the-art customer DIY-UT (Do-It-yourself-using-tech) model.
  • Achieve excellence in customer service and exceed the industry benchmarks of Net Promoter Score (NPS) for each of its brands - Furlenco and Prava.

“I believe 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,” Ajith Mohan Karimpana, Founder and CEO, House of Kieraya (HoK) and Furlenco said.

He further added, “People and their tastes are evolving according to their needs. Post-pandemic, we have seen a huge demand leading to high utilisation rates. With 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 audience.”

As HoK improves EBITDA margins and scales its revenues, it targets to turn PBT positive in one year.

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