Gurgaon-based fully furnished home rental service startup Fella Homes raised a seed funding of $2 Million from unnamed investors.
Fella Homes was founded in 2015 by five friends from IIT Roorkee,Virender Pratap Singh, Yadwinder Paul Singh, Digendra Singh Rathore, Kunal Singh & Amit Gupta. The startup provides fully equipped homes with standardized furniture, appliances and kitchenware, rented on per bed / per room basis.
Fella Homes plans to utilise the newly raised capital in acquiring new properties and tenants, team building and product development.
Also recently it acquired LifePad along with its network of homes and its team based out of Noida, in an all cash deal.
“The acquisition has helped us in understanding the Noida market and also strengthens our team. We launched our operations in Noida last week and plan to foray into Bengaluru, Pune and Hyderabad by the end of this year,”
said Digendra Singh Rathore.
The firm also plans to hire across all verticals and grow its team size from 60 to 150 members.
Noida-based LifePad was founded by IIM alumni and former BCG consultants, Piyush Bhartiya and Rachit Agrawal in 2015 and got seed funded in March 2016. LifePad provides fully furnished, yet affordable living experience to young professionals and helps home owners rent out their apartments at the same time.
On the acquisition, Piyush commented,
“To survive in this market, one needs strong technology as well as operations. Only after having a strong hold on both of these will the players achieve scalability and win the space, otherwise losing is inevitable. With strong backing and investments, Fella Homes was performing much better. They have been talking to us all these months and the acquisition worked for both of us.Fella Homes is currently looking to expand and hence, this was a perfect fit.”
Post the acquisition, Fella Homes will now be present in Gurgaon & Noida. LifePad customers will also gain access to a larger network of homes to chose from. After the acquisition, LifePad homes will be renamed as Fella Homes and will be managed under the same banner.
The startup currently has more than 100 properties in the Delhi-NCR region and plans to add more than 250 properties by the end of this year. The startup claims to have served more than 400 working professionals in finding share-rented apartments and targets a ten-fold increase by the end of the financial year.