House of Kieraya (HoK), known for furniture and lifestyle rental brand Furlenco, on Tuesday said it has raised USD 15 million (Rs 111.23 cr) from alternative debt platform TradeCred. It has entered into a USD 15-million asset financing deal with TradeCred, and over eight large family offices participated in this deal, the company said in a statement.
In a recent move, Furlenco has formed House of Kieraya (HoK) that includes Furlenco, its sub-brand UNLMTD (a furniture subscription service) and Furbicle (a remanufactured furniture brand). HoK founder and Chief Executive Ajith Mohan Karimpana said, “We believe that one single model cannot address the entire furniture market. With HoK, we are creating a continuum of sorts for the furniture needs of different segments, and at different stages of their life.” Rental, subscription, re-commerce, and retail brands are the way forward in this journey, Karimpana said.
TradeCred founder Hardik Shah said the furniture and appliances rental space is one of the most-resilient asset classes for investors, as consumers are switching to subscription-driven models during the pandemic. “With Furlenco being the market leader and the fastest-growing business in the space, TradeCred is delighted to partner with HoK to scale efficiently with an asset light model,” he said. TradeCred, founded in 2018, has deployed USD 250 million till date. On the assets leasing side, TradeCred has partnered with over 50 businesses to help them scale faster with an asset-light model.