Ziffy Technologies today announced that it has acquired Gurugram-based home rental startup Fella Homes for an all cash plus equity deal.
With the acquisition, Ziffy plans to consolidate the expansion database for both the companies, wherein they will continue to serve exclusive rooms and Fella Homes (now a ZiffyHomes subsidiary) will provide rentals at affordable pricing.
Following the completion of the acquisition, the Fella Homes Founding team will be a part of Ziffy’s leadership. Along with that, DS Group (DSCP) will be joining the board of ZiffyHomes as Investor Director. DS Group will continue to be the investor for ZiffyHomes.
Founded in 2015, Fella Homes has been plugged as a branded network of ready-to-move rental homes for professionals in metro cities. It provides fully-equipped homes with standardised furniture, appliances and kitchenware, rented on per bed/per room basis.
A prime aim of the acquisition is to provide all-inclusive deals for city migrants or long-term travellers who are looking for affordable accommodation. In order to make house renting hassle-free, reliable and a rewarding experience for both homeowners and tenants, ZiffyHomes targets to create a successful co-living platform for top millennial cities of India.
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.”
Adding he continues, “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.”
Digendra Singh Rathore, CEO and Co-Founder at Fella Homes, 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”
ZiffyHomes, had earlier raised seed funding of Rs 2 crore from individual investors. The round was led by Bikky Khosla, Angel Investor and CEO at TradeIndia.com; and Anirudh Agarwal, Managing Director at Shree Sharda Group.
The current acquisition will add 800 rooms to ZiffyHome's rental business. The Ziffy Technologies platform currently has close to 2,000 rooms along with an exclusive supply of around 500 studio apartments listed on it across Delhi-NCR. Overall entity is operationally unit economics positive and would continue to deploy investment towards its expansion plans.
Back in 2016, Fella Homes had acquired Noida-based home rental startup LifePad.