Grip Invest, a lease finance platform, said it has entered into a $5 million asset financing deal with House of Kieraya (HoK), known for online furniture rental brand Furlenco.
The deal will enable HoK to access additional furniture assets to support the rapid growth they are witnessing in terms of new users.
Recently, Furlenco formed HoK, a corporate brand that includes Furlenco, and its sub-brand - UNLMTD - furniture subscription service, along with Furbicle - a remanufactured furniture brand.
“We are seeing unprecedented growth that has exceeded our expectations. Our partnership with Grip will help fuel the asset demand that is coming on the back of our aggressive growth and expansion plans. Over the years, we have proven that alternate debt platforms can work seamlessly with growing companies like ours,” Vaibhav Laddha, head of corporate finance at HoK, said.
He added, “We plan to expand to 25 cities soon, and HoK is targeting a revenue of Rs 2,500 crore by 2026.”
Grip, founded by Nikhil Aggarwal and Vivek Gulati, acts as a link between companies and retail investors for fulfilling capital needs of firms. It said the partnership between HoK will help in educating more companies in leveraging asset leasing models to accelerate their business growth and in achieving larger targets of Rs 1,000 crore in AUM by September 2022.
The company said it has facilitated leasing of assets over Rs 100+ cr so far and enabled 50+ companies such as Udaan, Furlenco, Holisol, Everest Fleet, Loadshare, IPL Tech, ChargeZone, Vogo, FleetX, FabAlley, BlueTokai, etc to access a different channel of growth capital.
In July, Furlenco raised Rs 1,000 crore ($140 million) in a mix of equity and debt led by Zinnia Global Fund.
The company has recently announced its entry into Jaipur, Mysuru, and Ahmedabad, and is now looking to launch in more Tier I and Tier-II cities. With this, Furlenco is now available in 13 cities including Bengaluru, Mumbai, Pune, Delhi, Noida, Gurugram, Ghaziabad, Faridabad, Hyderabad, Chennai, Mysuru, and Ahmedabad.
Other than furniture, Furlenco also offers a host of appliances such as laptops, microwave ovens, LED televisions, washing machines, and has recently launched and expanded its services to renting two-wheelers, gaming consoles, entertainment, and fitness equipment.