 "Quikr launches Dazzlr to organise unorganised segments of film industry")
Tiger Global-backed online classifieds player Quikr on Monday announced the acquisition of Grabhouse, an online home rental solutions provider, in an all-stock deal giving investors Sequoia Capital and Kalaari Capital stake in Quikr.
The acquisition, the ninth so far in a year, is in line with Quikr's strategy of growing deeper in sectors such as homes, cars, jobs and beauty and wellness. The company has taken advantage of a lull in the funding market to pickup rivals at throwaway prices in order to strengthen its own service. Quikr did not disclose the value of the deal.
Grabhouse will give Quikr an entry into the managed rentals service, where customers pay the company on a per-bed/per-room basis for moving into a fully furnished home. This will help Quikr take on other players in the market such as Nestaway, which are growing in popularity as consumers look for more hassle-free options to renting a house.
The managed rental service is currently operational in four cities across India, while the more generic rentals marketplace of Grabhouse functions across 11 cities. Grabhouse had raised $10 million from investors such as Kalaari Capital and Sequoia Capital and an angel investment from India Quotient.
The online real estate space has seen an exodus in the past 18 months, with some of the most well-funded firms such as Softbank-backed Housing facing heat for glorified burn rates. Moreover, a slump in the real estate market over the past few quarters has put pressure on these firms to reduce burn and show profits.
"We are very excited about the launch of our managed rentals model - it brings convenience to consumers while eliminating cash from property rentals, and we are excited to start it with the acquisition of Grabhouse," said Atul Tewari, COO at Quikr, in a statement.
Grabhouse will function as a separate entity under the ownership of Quikr, while the entire team including the founders will move to the Quikr headquarters in Bengaluru.
Quikr, which is modelled around Craigslist is one among the few Indian Unicorns with a valuation of $1.5 billion. The company has so far raised around $346 million in six rounds from investors such as Tiger Global, Warburg Pincus, and Norwest Venture Partners.
