Listed company Furlenco said on Monday that Sheela Foam, maker of mattress brand Sleepwell, will acquire a 35 percent stake in furniture startup Furlenco in a bid to grab a bigger share of the mattress market in India.
Sheela Foam proposes to pay $36.5m for 35% stake in Bengaluru-based startup (old company) explain In stock exchange filings. Prior to this transaction, Furlenco had raised a total of more than $225 million in equity and debt financing, which valued Furlenco at approximately $104.3 million.
Furlenco operates a furniture and appliance rental service. The platform, which operates in more than a dozen cities, generated $18.5 million in revenue in the fiscal year ended March, Sheela Foam said.
The publicly traded company said the acquisition of Furlenco’s stake will help Sheela Foam “enter the fast-growing market for branded furniture.”
Separately, Sheela Foam said it would pay $262 million for a 94.66% stake in eponymous mattress seller Kurlon Enterprises.