Gurugram-based Cityfurnish, an online platform for renting furniture, has raised $2.5 million in debt and equity investment, bringing its total funding to $10 million.
The Northern Arc Capital-led debt round was also participated by Western Capital and UC Capital along with the existing backers.
Cityfurnish intends to use the cash generated to grow its business, solidify its brand position, enhance technology, and declare its presence in additional cities by 2025.
Neerav Jain, a former intern at Pepperfry, an omnichannel retailer of furniture and furnishings, established CityFurnish in 2015. Neerav, who comes from a family of furniture makers in Jodhpur, decided to investigate the rental market that had grown in India as more young adults on salaries were moving homes frequently and living away from their hometowns.
These people had also begun to prefer renting beds, couches, and tables over buying them, which not only comes at a higher cost but also makes moving throughout cities more challenging.
By the time Neerav and co-founder Saurabh Gupta launched CityFurnish from their Gurugram apartment, the Indian furniture rental market had already witnessed companies like Furlenco (2011) and Rentomojo (2014), two businesses that established the standard for furniture lending.
Cityfurnish is a brand of furniture and appliance rentals that delivers a variety of furniture and furnishing options to customers’ doorsteps online. The furniture on the platform takes design cues from metropolitan Indian residents’ interior decor. They seek to assemble relics from many eras to rent furniture and décor in convenient packages at reasonable prices.
The firm says it has achieved profitability, has seen revenue increase by more than 100% through 2022, and is currently present in Delhi-National Capital Region, Bengaluru, Mumbai, Pune, Hyderabad, and Chennai.
Along with other online furniture retailers, Cityfurnish competes with Pepperfry UrbanLadder and WoodenStreet.