The urban population has started a new trend of rental furniture. It has helped the rental market to grow exponentially. As per Redseer latest research, the rental furniture market cap has surged to Rs 33500 crore. 43% urban population from 20 top cities have contributed half of the above-market cap.
New startups are providing better opportunities to the youngsters who need temporary solutions for their homes. Furlenco is one of the known rental furniture company in Bangalore with a total of 40 employees. It operates in Bengaluru. As per the reports, the market will grow with a compound annual growth of 11% by 2025.
Why Rental Furniture Market is Growing?
You get hired for a multinational company or in governmental organizations in some big city. You are not sure for how long you are there. How you will arrange the household items especially furniture? Furniture is costly and you don’t buy them now and then. So, what is the temporary solution? Renting furniture and other appliances is the wisest decision you can take if you are living temporarily in a city.
Companies like Furlenco, RentoMojo, Rentickle, and CityFurnish have helped the market to grow rapidly. As per Redseer data, the top 20 cities are contributing 55% to the total rental furniture market.
Based on the Redseer data, it is found that Indian Startups can serve more than 14 million users with an average monthly order of Rs 1900. The study also found that customers take the furniture on the rent for an average period of 13 months.
43% of customers from the top 20 urban cities are responsible for the 50% growth of the rental furniture market. Most of these customers are placed in multinational companies and expect a location change within a year. The market will grow at an annual compound growth rate of 11% by 2025.
Future Aspects of Rental Furniture Market
Redseer research also reveals that better marketing strategies have helped the startups to reach more audience. Initially, youngsters had no idea whether such services are available or not. Now, word of mouth and the online campaigns by different startups have resulted in better awareness of the market.
Positive Users reviews have built trust in the rental market. Redseer surveyed a wide range of customers. Around 30% of survey respondents are already using rental furniture.
“The market is poised to grow significantly as there is a strong amount of awareness and usage even in tier 1 cities (beyond the top metros) which shows definite potential, however, the bigger players are still not present in these markets. But as the pandemic induced reverse migration, bachelors, students have moved back to their hometowns to live with families and save on their expenses. This will create enough opportunities for these players for them to foray into these markets.”
The recent popularity of the rental furniture industry has attracted more investors. They are ready to invest in the current startups. Last month, Rentomojo, a rental furniture startup, has raised Rs 10 crore from its existing investors in a Series C funding round. Furlenco is on the way to start its Series D funding round.