India has traditionally been a market where consumers preferred to buy furniture and appliances rather than rent them. However, changing demographics, rising urbanisation, frequent relocation and the high cost of furnishing a home are gradually changing this consumption pattern. The growth of organised rental platforms such as Furlenco and Rentomojo is a reflection of this shift from ownership towards convenience and flexibility.
India’s Urbanisation Is Creating a Large Rental Consumer Base
India has a large working population that is increasingly concentrated in metro and other urban centres. The urban population has nearly doubled from approximately 292 million to more than 522 million, while the urbanisation rate has increased from around 28% to approximately 36% of the total population. By CY2050P, India’s urbanisation rate is projected to reach approximately 43%, potentially adding another 200 million people to the urban population.
India still has significant headroom compared with more urbanised economies. China, for example, has an urbanisation rate of around 65% in CY2025. The growing urban population is also relatively young and mobile, with many people moving to cities for employment opportunities.
Unfurnished Homes Create the Need for Rental Furniture and Appliances
A major structural factor supporting the rental industry is the nature of India’s residential rental market. Nearly 80% of rental housing stock is estimated to be unfurnished or semi-furnished, which means tenants often have to arrange their own furniture and appliances after moving into a house.
This is different from markets such as Vietnam, where rental homes are more commonly offered as turnkey, fully furnished properties. In India, tenants may have to purchase beds, sofas, wardrobes, refrigerators, washing machines, televisions and other household products before they can comfortably settle into a rented home.
The problem becomes more significant because furnishing an urban apartment can require a substantial upfront expenditure. In India, the cost of furnishing an urban apartment can amount to more than eight to nine months of average income measured against GNI per capita. In countries such as South Korea, Japan, the US, Vietnam, Indonesia and Malaysia, the equivalent requirement can be closer to one to four months of income.
For a young consumer who is already paying monthly rent, spending several months of income on furniture and appliances may not make economic sense. Renting therefore provides a way to convert a large upfront purchase into a monthly recurring expense.
Mobility Is Another Major Driver
The rental market is not being driven only by affordability. Mobility is becoming an equally important factor.
A typical rental agreement in India is often for one year. If the agreement is not renewed, the tenant may have to relocate to another house or even another city. Frequent job changes and transfers can make this movement more common, particularly among younger professionals.
Buying furniture and appliances creates a mobility cost because the consumer has to transport, install and eventually dispose of or resell these products when moving. Rental platforms address this problem by taking care of shifting, installation and other services.
This means the rental proposition is gradually moving beyond being purely cost-driven. For many consumers, the value proposition is increasingly about convenience, flexibility and mobility.
Young Consumers Are Also Changing Their Consumption Preferences
There is another factor supporting the rental model: changing consumer preferences among younger urban consumers.
Younger consumers are more exposed to new product launches and changing designs and may prefer upgrading products rather than owning the same furniture or appliance for many years. Renting allows consumers to access products without making a large upfront investment and gives them greater flexibility to change products as their requirements change.
As a result, the rental industry is increasingly positioned not simply as an affordable alternative to ownership, but as a convenience-oriented consumption model.
How Does the Furniture Rental Business Model Work?
Platforms such as Furlenco and Rentomojo operate an asset-backed rental model. They source or manufacture furniture and appliances and offer these products to consumers through monthly rental or subscription plans.
The consumer pays a recurring monthly amount instead of purchasing the product outright. The rental company manages services such as delivery, installation, maintenance and shifting, depending on the product and subscription.
This creates a recurring revenue model for the platform. The same asset can potentially generate revenue over multiple rental cycles during its useful life, making asset utilisation and product life important factors in determining the economics of the business.
How Large Is India’s Furniture and Appliance Rental Market?
India’s home furniture and appliance rental TAM is estimated at approximately ₹69,520 crore in CY2025, focused largely on demand from semi-furnished and unfurnished housing. The market is projected to grow at around 11% CAGR, reaching approximately ₹1,17,210 crore by CY2030P.
However, the organised rental segment is still relatively small. The organised rental market has grown from approximately ₹350 crore in CY2021 to ₹1,550 crore in CY2025, representing around 45% CAGR. It is projected to reach approximately ₹6,030 crore by CY2030P, implying a CAGR of around 31%.
Excluding water purifiers, the organised rental market stood at approximately ₹1,150 crore in CY2025 and is expected to grow at around 30% CAGR. Around 80–85% of this market is already organised. Water purifier rentals are also projected to grow at approximately 31% CAGR, supported by recurring subscriptions and service-based revenue.
Market penetration also remains relatively low but has been increasing. Furniture rental penetration increased from approximately 0.65% in CY2021 to 1.0% in CY2025, while appliance rental penetration increased from around 0.5% to 1.4% during the same period.
This combination of low penetration and high projected market growth provides room for organised rental platforms to expand.
Furlenco vs Rentomojo: Who Are the Major Players?
Furlenco and Rentomojo are currently among the largest organised players in India’s furniture and appliance rental market. Together, they account for approximately 80-85% of the market based on active subscriber base.
Furlenco has around 200,000 subscribers and operates across approximately 28 cities, while Rentomojo has around 253,825 subscribers across approximately 29 cities. In terms of physical presence, Furlenco has around 63 stores, compared with approximately 82 stores for Rentomojo.
On the revenue front, Furlenco generated approximately ₹370 crore, while Rentomojo generated approximately ₹387 crore.However, the two companies have a different revenue mix. Around 80% of Furlenco’s revenue comes from furniture rentals, while approximately 20% comes from appliances. Rentomojo has a more balanced mix, with around 51% of revenue coming from furniture and 49% from appliances.
Why Does Furlenco Focus More on Furniture?
Furlenco’s higher exposure to furniture is an important part of its business strategy.
Furniture can have a longer useful life than many consumer appliances, allowing the same asset to potentially generate rental income over a longer period. Furniture also provides an opportunity to generate recurring revenue from products that can remain in the rental fleet for multiple rental cycles.
This is one reason Furlenco has focused more heavily on furniture rather than building an equally balanced furniture-appliance portfolio like Rentomojo.
Furlenco vs Rentomojo: Growth, Profitability and Valuation
The comparison becomes more interesting when growth, profitability and valuation are considered together.
| PEER TO PEER | PRICE TO EARNINGS | MARKET CAP | PRICE TO BOOK VALUE | ROE | REVENUE GROWTH YOY | SUSBSCRIBER | EBITDA MARGIN |
| RENTOMOJO | 48.7 | 5290 CR | 17.67 | 45.40% | 45.51% | 253825 | 42% |
| FURELNCO | 34.39 | 2047 CR | 7.67 | 22.37 | 62% | 200000 | 34.86% |
Rentomojo has a larger subscriber base and reports an EBITDA margin of approximately 42%, compared with 34.86% for Furlenco. Rentomojo’s ROE is also higher at approximately 45.40%, compared with 22.37% for Furlenco.
However, Furlenco has reported faster revenue growth. Its revenue has grown approximately 62% YoY, compared with 45.51% for Rentomojo. This indicates that Furlenco is expanding at a faster reported revenue-growth rate despite operating at a smaller scale.
The valuation multiples also show a difference. Furlenco’s unlisted shares are trading at approximately 34.39x earnings and 7.67x price-to-book, while Rentomojo is valued at approximately 48.7x earnings and 17.67x price-to-book.
At the current numbers, the two businesses therefore present different profiles. Furlenco has reported faster revenue growth and trades at lower valuation multiples, while Rentomojo has a larger subscriber base, higher EBITDA margin and higher ROE.
What Is Furlenco Planning Next?
Furlenco is backed by Sheela Foam, which has a wide distribution network through brands such as Sleepwell and Kurlon. Furlenco plans to leverage this network by expanding its presence through shop-in-shop formats across cities.
The company is also looking to enter more cities and increase its addressable customer base. Alongside its core furniture rental business, Furlenco is expanding into additional categories such as kids’ furniture, which could provide another avenue for growth.
Furlenco is targeting revenue of approximately ₹600 crore before its planned IPO, with a longer-term target of approximately ₹1,000 crore in revenue by FY30. The company has also indicated plans for an IPO at a targeted valuation of around ₹7,000 crore.
Can We Invest in Furlenco Unlisted Shares?
Furlenco’s unlisted shares are currently trading at around ₹260 per share. With India’s rental market growing, increasing urbanisation and Furlenco expanding across cities and categories, the company has significant room to grow its business. Compared with Rentomojo, Furlenco is trading at a lower valuation multiple of around 35x earnings versus approximately 45–49x for Rentomojo, despite generating similar revenue and reporting faster revenue growth. This valuation gap is an important factor to consider when evaluating Furlenco’s unlisted shares.