representative image
House of Hire (HOK), the parent of India’s lifestyle and furniture brand, Furlenko, is on a profitable path. Furlenko has increased its annual revenue run rate (ARR) from Rs 100 crore to Rs 200 crore in the last year.
The company has also started generating positive cash flow from operations and aims to hit a revenue run rate of Rs 500 crore in a year.
Built on a strong foundation of technology, design, innovation and customer experience, Furlenko aims to become free cash positive by the first quarter of next year and aims to become profitable in one year.
While most of the revenue is attributed to Furlenko, HOK made notable announcements last year as part of its growth and category expansion strategy.
The company launched a sub-brand of Furlenko, UNLMTD – an annual subscription service that furnishes your entire home at one price, and Prava – a luxury furniture and lifestyle brand.
These brands continue to grow and contribute more than 10% to HoK’s revenue.
The company is now evolving to meet the needs of a larger audience, and is providing access, choice and transformation across the furniture and lifestyle category.
HOK Target:
- Be free cash positive by March 2023 and achieve a revenue run rate of Rs 500 cr in a year.
- Be a tech-driven company with a million dollar investment. To expedite the process, the company has already taken necessary steps towards creating a state-of-the-art customer DIY-UT (Do-It-Yourself-Using-Tech) model.
- To achieve excellence in customer service and exceed the industry benchmark of Net Promoter Score (NPS) for each of its brands – Furlenko and Prava.
“I believe that as a new age startup, one should aim to create real shareholder wealth for the long term, which is why we have embarked on a path to profitability by focusing on growth in parallel. We have decided to move on,” said Ajit Mohan Karimpana, Founder and CEO, House of Kiraya (HOK) and Furlenko.
He further added, “People and their tastes are evolving according to their needs. After the pandemic, we have seen a huge demand leading to higher utilization rates. With Furlenko, we aim to have access to designer furniture at value for money. And we believe that in the grand scheme of things, rentals are just the first step and we are looking at other avenues to cater to a wider audience.
As HoK improves EBITDA margins and boosts its revenue, it aims to turn PBT positive in year one.