Sheela Foam, the maker of the mattress brand Sleepwell, will be acquiring a 35% stake in furniture startup Furlenco, the publicly listed firm said Monday as it pushes for a bigger share of India’s mattress market.
Sheela Foam has proposed to pay $36.5 million for the 35% stake in the Bengaluru-headquartered startup, the older firm said in a stock exchange filing. The deal values Furlenco, which has raised over $225 million altogether prior to the deal against equity and in debt, at about $104.3 million.
Furlenco operates a furniture and appliance rental service. The platform, which operates in more than a dozen cities, generated a revenue of $18.5 million in the financial year ending March this year, Sheela Foam said.
Acquiring the stake in Furlenco will help Sheela Foam “enter the fast-growing branded furniture market,” the publicly listed firm said.
Separately, Sheela Foam said it’s acquiring a 94.66% stake in Kurlon Enterprises, the eponymous mattress seller, for $262 million.