Indian fully furnished homes rental service, Fella Homes has acquired competitor LifePad along with its network of homes and Noida-based team in an all cash deal.
Currently operating out of Gurgaon only, Fella Homes aims to leverage from the acquisition to quickly expand its network of homes and establish a multi-city presence.
The company says LifePad homes will be rebranded Fella Homes and will be managed under the same banner with customers gaining access to a larger network of homes to chose from.
Fella Homes, which raised seed funding of $2 million in early 2016 from an undisclosed investor, describes itself as a "next-gen property management" company aiming to provide a smart, and hassle free lifestyle to everyone.
It claims it's residential renting platform simplifies the house hunt process.
Founded in 2015 by IIT Roorkee and Stanford alumni – Virender Pratap Singh, Yadwinder Paul Singh, Digendra Singh Rathore, Kunal Singh and Amit Gupta, the company has a team of over 50 employees
Similarly, Noida-based LifePad provided fully furnished, yet affordable living spaces to young professionals and helped home owners rent out their apartments.
According to yourstory.com, Fella Homes also has the same kind of revenue sharing business model as Lifepad, in which the platform works to bring the home owners and tenants together.
"After the furnished house is rented out, a share of the rent is taken by the startup every month and the relationship between the tenant and the operations team continues, which is a win-win situation for both the parties" the site explains.
Reflecting a similar trajectory to Fella Homes, LifePad was founded in 2015 by IIM alumni and former BCG consultants, Piyush Bhartiya and Rachit Agrawal, and raised seed funds in March 2016.
Fella Homes cofounder Digendra Singh Rathore told yourstory.com the acquisition of Lifepad has helped and strengthened his team and improved its understanding of the Noida market.
"We launched our operations in Noida last week and plan to foray into Bengaluru, Pune and Hyderabad by the end of this year.”
He adds the business plans to hire across all verticals and grow its team size from 60 to 150 members.
With 100+ properties and 400+ customers currently on the books, the business is targeting an expansion of 2.5 per cent by the end of the year and to achieve 10 per cent growth by March 2017.
Fella Homes names its key significant competitor Bengaluru-based NestAway, which recently raised $30 million in funding in a Series C round led by Tiger Global, Russian billionaire Yuri Milner, IDG Ventures India and entrepreneur Ratan Tata.
LifePad cofounder Piyush Bhartiya says the rental market is worth $30B in the region, with a huge gap still unmet.
"All major cities witness thousands and lakhs of people coming every year," he told yourstory.com.
His cofounder Rachit Agrawal adds helping a home seeker in finding a furnished house and managing the experience post move-in holds the key.
"As it’s an operationally challenging task, to succeed in this market one has to optimize the operations through technology.”
With the acquisition of LifePad, its co-founders plan a short break before launching their next venture, which they are yet to fully decide upon.
“We will take some time to analyze our decisions, performance and learnings before jumping on to the next venture," Agrawal told indianweb2.com.
"LifePad was a great experience but it’s important to take feedback and analyze your strengthens and weaknesses.”