Online shared and family home rental platform, NestAway, has announced the acquisition of Bengaluru-based rental management company Zenify. The value of the transaction was not disclosed, but The Economic Times reported, quoting sources, that it was around $10 million.
In May last year, Zenify had raised Rs 10 crore in total, including a round of Rs 6 crore (around $1 million) from HNI investors in May last year. In April last year, Nestaway, had raised $30 million in series C round of funding led by Tiger Global, apart from an undisclosed amount of funding from Ratan Tata, and in 2015, a round of funding from Tiger Global and Flipkart.
What Zenify adds to Nestaway
NestAway says that following this acquisition, it will have 4000 homes to its listing in the family rental category, a segment which it entered last year. Note that NestAway and Zenify were competitors in the family homes rental space, and the Zenify website says that it currently manages more than 3,500 apartments, with more than 10,000 customers. Both NestAway and Zenify charge commission or service fee from the house owners.
NestAway is operational in eight cities Bengaluru, Delhi, Gurgaon, Noida, Ghaziabad, Hyderabad, Pune and Mumbai while Zenify is operational only in Bangalore.
Zenify will continue to operate as an individual brand under the NestAway umbrella.
Competition in home rental space
Home rentals and purchase space has seen significant consolidation in recent times. PropTiger and Housing.com merged in January this year, raising $55million in fresh capital. Housing, in April this year had announced that it will re-enter the renting space with a target to list 2 lakh homes in three months. The company had discontinued the service in 2015 and focused only on buying and selling of apartments. PropTiger had, in April 2015, acquired Makaan.com which offers buying, selling and renting options.
Quikr had acquired Grabhouse, for its real estate vertical QuikrHomes in an all stock deal of $10 million, in November last year. Grabhouse gives listing of PG’s and Grabhouse Cocoon, which operates on a shared accomodation model similar to NestAway. Quikr, in January 2016, had acquired CommonFloor for $200 million all stock deal.
The space also has other players such as NoBrokers.com which has raised a total of $20 million.