Home services startup Zimmber acquires FindYahan in cash-and-stock deal.
New Delhi | By Biswarup Gooptu, ET Bureau | 16 Feb, 2016, 01:09 AM IST.
Rejuvenate Solutions, which owns and operates on-demand home services platform Zimmber, has acquired its smaller Gurgaon-based competitor FindYahan for an undisclosed sum, in a cash-and-stock deal, highlighting the ongoing consolidation in India’s nascent home services market.
The development also comes a week after ET reported that the Mumbai based Zimmber was in the final stages of on-boarding Snapdeal, India’s largest online marketplace, as an investor. Snapdeal is believed to be investing between Rs 40 crore and Rs 50 crore in the company.
“This is the right time to shift gears, and the strategy is to expand into other services. The blue-collar market that we cater to, is a tough one to crack, while white-collar service providers, such as FindYahan, know-how to manage customers well, while at the same time scale quickly,” said Amit Kumar, co-founder, Zimmber.
The acquisition will see most of the FindYahan team, including its two founders — Rachit Mathur and Snehal Khanor — join Zimmber. According to Kumar, the FindYahan brand will be kept operational for the moment.
The two-year-old startup, which has about 700 service providers on its platform, counts Karan Bajwa, managing director of Microsoft India, Sunjay Kapur, managing director of Sona Koyo Steering Systems and Brand Capital, an investment arm of Bennett Coleman & Co, the publisher of this newspaper, among its backers.
Unlike Zimmber, FindYahan, which was founded in 2013, primarily serves consumers looking for white collar services, such as Yoga teachers, tuition teachers, language tutors and kitchen services, among others.
Zimmber, which operates in the Delhi-National Capital Region, Mumbai and Pune, has about 1,000 service providers on its platform, which allows consumers to book services such as laundry, plumbing, pest control and home cleaning.
The acquisition is the latest example of the ongoing consolidation taking place in the country’s tech-fuelled, ondemand services space, as venture capital funding, which had come in waves in the first six months of 2015, begins to dry up.
Earlier this month, ET reported that Amazon-backed HouseJoy had acquired online laundry services player My Wash in an all-stock deal, while rivals, UrbanClap andSulekha are also believed to be on the lookout for potential acquisitions in high-frequency categories, across segments.
“We will see more acquisitions in this space. While last year saw more than 150 startups emerge, and received funding from venture capital, unit economics continue to be an issue,” said Kumar.
This is also the second buyout by Zimmber. In 2015, it acquired Mumbai based laundry service, Dhulai, for an undisclosed sum.