Behind Sleepwell parent Sheela Foam’s Furlenco bet

The decision to invest Rs 300 crore in the furniture rental startup is an attempt by the mattress giant to diversify into furniture retail and acquire an online presence. Will the strategy pay off?

Last month, Sheela Foam, the manufacturer of Sleepwell mattresses and the largest mattress maker in India in terms of market share, announced two deals in one go. 

1. Acquisition of a controlling stake in Kurlon Enterprise Ltd, the country’s second largest mattress player, for Rs 2,035 crore.
2. An investment of Rs 300 crore, for a ~35% stake in Furlenco, a furniture rental startup.

This is unusual. Sheela Foam chairman and managing director Rahul Gautam, however, puts it down to serendipity. Talks on both deals began last year, and it was just a question of timing that both happened simultaneously, …

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Aakriti Bhalla

Aakriti used to write at the intersection of public markets and large corporations. She joined The Morning Context from The Financial Express, where she was with the markets team, and before that had started out in business journalism as a correspondent with Reuters.

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aakriti@mailtmc.com

Delhi