The notion of ownership is changing and with the rise of Ola/Uber in India, startups are disrupting some of the well established markets in India.
Furlenco, a furniture rental startup has raised $6mn in funding from Lightbox. Furlenco owns the entire experience – i.e. from design to delivery.
Lightbox Investor, Sid Talwar shares an interesting perspective on the hypothesis behind this investment.
To own something will become less and less important, while product experience and community driven aspiration will move us from “outright buying” to short-term renting. Just look at the number of people renting iPhones over the weekend in Brazil.
Furniture is a very interesting industry. For one, furniture in India is very expensive. In fact, for many of us, it’s amongst the top 3 most expensive purchases we will make in our lives. Other things we buy either consistently fall in price (think phones, electronic goods, appliances) or provide consumers access to financial support through long-term loans (homes, cars). In furniture, prices have remained consistent through the years and there are few financing options.
As a result, it’s one of the few times that a purchase isn’t a reflection of the consumer’s personality. You’re forced to either buy a few pieces of furniture at a time, or buy lower quality furniture than they want to, or then just don’t buy at all. Very few other purchases force this decision on their customers. Can you imagine buying a car one tire at a time?
Parabo Press is a breeze to use: It’s clean and easy to read, your options are straightforward, and there are no annoying upsells. Prints from its Risograph machine, which uses soy-based ink and is described by Parabo as having “a cult following since its invention in 1980s Japan.”
“We are creating solutions specifically for the Indian rental community. For Aibnb, we are creating a separate set of packages, more attuned towards travellers, which will allow the hosts to pick and choose from these packages and furnish their house,” Ajith Karimpana
The Make in India programme needs design, in order to succeed in its fundamental endeavour. Melorra has integrated design and manufacturing with processes, people working in manufacturing are involved in product design concepts as a result delivery times are almost half those of competitors.
Red Chillies Entertainment partnered with Furlenco for its forthcoming Shah Rukh Khan and Alia Bhatt starrer ‘Dear Zindagi’. Furlenco and Red Chillies have also launched a TVC and an exclusive ‘Dear Zindagi’ store for the movie buffs.
Sub-cultures drive the products that emerge out of tech startups. Sub-cultures push the envelope on thinking about how society might develop. The ones that interest investors are those with the potential to indicate where the world could go next.
It is a combination of 50% equity and 50% debt, making them one of the largest debt funded start-ups in India. While Furlenco plans to utilise the equity component to grow its business into more cities, the debt will be used to purchase inventory.
Droom has clocked a GMV of Rs 104 crore in a short span of 19 months. They have registered over Rs 1,200 crore in annualised GMV, with plans to achieve Rs 3,000 crore by March 2017. The achievement has come despite low marketing spends at 3.75 per cent of the entire GMV.