Sleepwell mattress’ parent company, Sheela Foam, has signed an agreement to acquire stakes in online furniture retailer Furlenco. The deal with Furlenco marks Sheela Foam’s entry into the rapidly growing online furniture e-commerce business.

Sleepwell proposes to acquire around 35% stake in Furlenco for a cash consideration of ₹300 crore, which is subject to customary working capital and other adjustments. This roughly values the Bengaluru-based company at around ₹857 crore (over US$ 100 million).

Furlenco provides subscription-based furniture and home decor on rent along with relocation services and is backed by Zinnia Global Fund, CE-Ventures and Lightbox Ventures and actor Amir Khan. With investment in Furlenco, Sleepwell will now compete with new-age companies such as Rentomojo, Rentickle, Cityfurnish and Pepperfry.

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