Sheela Foam eyes higher stake in Furlenco operator

The mattress maker has so far invested ₹400 cr in Furlenco parent HoK valuing the company at about ₹857 crore

- Priyamvada C

Sheela Foam Ltd is likely to infuse additional capital in House of Kieraya Ltd (HoK), which operates furniture rental startup Furlenco, as the firm seeks to raise $10-15 million, two people familiar with the matter told Mint.

"The company plans to rope in external and existing investors," one of the two people said, adding that deal structures are being worked out.

Sheela Foam, which listed in 2016, has invested about ₹400 crore to date to acquire a 45% stake in HoK, and is the largest shareholder. With 50.10% of the equity voting rights, HoK is strategically important for the mattress maker as it can be a key growth vertical for Sheela Foam, Crisil said in April.