Technology driven home rental marketplace, Ziffy Technologies has announced the acquisition of Gurugram-based home rental startup, FellaHomes for an all-cash plus equity deal.
With this acquisition, Ziffy plans to consolidate the expansion database for both the companies, where-in they will continue to serve exclusive rooms and FellaHomes (now a ZiffyHomes subsidiary) would provide rentals at affordable pricing.
Further, following the completion of the acquisition, the FellaHomes founding team will be a part of Ziffy's leadership, adding valuable experience and knowledge.
Along with that DS Group (DSCP) would be joining the board of ZiffyHomes as investor director.
"Market consolidation is an important phenomenon in the business world. It has the ability to reform and redefine business ideas, and open up new opportunities. We are proud to have achieved the same at this level and understand that to enhance our competences further, consolidation would be a faster and effective way. Acquisition of FellaHomes would help us to expand our rental capabilities towards bed wise and affordable bookings. With the help of similar expertise, we would soon be launching products facilitating to the students segment," said CEO and co-founder, ZiffyHomes, Sanchal Ranjan.
"Both Fella and Ziffy have been trying to solve the same problem in the same market while working with same partners, vendors and customers in the ecosystem. So, we realised that our common mission can be faster accomplished if we join hands and combine our strengths. The past learnings about this business in both the companies have been very valuable which will now be shared across the team. This will help us to serve the existing customers better and grow fast in next few months to become the leading player in Delhi NCR along with launching new verticals," said CEO and co-founder, FellaHomes, Digendra Singh Rathore.
ZiffyHomes, had earlier raised a seed funding of Rs. 2 crores from individual investors.
The round was led by Bikky Khosla, angel investor and CEO, TradeIndia.com and Anirudh Agarwal, MD, Shree Sharda Group.
Ziffy Technologies platform currently has close to 2,000 rooms along with exclusive supply of around 500 studio apartments listed on it across Delhi/NCR.
The current acquisition will add 800 Rooms to ZiffyHome's rental business