Home-rental marketplace Ziffy Technologies announced their acquisition of Gurgaon home rental startup Fella Homes in an all-cash plus equity deal today. Through the acquisition, Ziffy plans to consolidate database for both companies – while they continue to serve exclusive rooms, Fella Homes will continue to provide rental homes at affordable pricing.
Founded in 2015, Fella Homes is offers a network of ready-to-move rental homes for working professionals in metro cities. They provide fully equipped homes with standardised furniture, appliances and kitchenware, rented on per bed/per room basis.
Digendra Singh Rathore, CEO & Co-Founder at FellaHomes commented, “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.”
As part of the transaction, the founding team of Fella Homes will now join Ziffy’s leadership. In addition, DS Group (DSCP) would be joining the board of ZiffyHomes as Investor Director as they continue to invest in ZiffyHomes.
Speaking on the announcement, Sanchal Ranjan, CEO and Co-Founder at ZiffyHomes commented, “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.”
The aim of Ziffy’s acquisition of Fella Homes is to be able to provide all-inclusive deals for city migrants or long term travellers who are looking for affordable accommodation as the former strives to create a successful co-living platform for top millennial cities of India.
Sanchal adds, “Acquisition of Fella Homes 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.”
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 the startup’s rental business.
Previously ZiffyHomes raised a seed funding of Rs. 2 crore from individual investors, led by Bikky Khosla, Angel Investor and CEO at TradeIndia.com and Anirudh Agarwal, Managing Director at Shree Sharda Group.