British peer-to-peer rental marketplace Fat Lama has been acquired by its Swedish rival Hygglo for $41.5 million. According to the companies, the acquisition will lead to the formation of the largest European peer-to-peer rental platform. This will allow them to serve more customers across Europe and the U.S. The UK-based startup will facilitate a smooth integration into Hygglo’s existing service.
Founded in London in 2016, the rent ‘anything’ platform allows users to list and rent products of any variety, including bikes, drones, cameras and more for a daily fee and takes an average 26% cut.
According to the company, the demand for rentals soared during the pandemic, which in turn helped the company to reap profits for the first time since its inception. Fat Llama had earlier raised $10 million in a funding round led by Blossom Capital in 2018.
Talking about the new development, Chaz Englander, co-founder of Fat Llama said: “I couldn’t imagine a better future for the business than this acquisition with Hygglo. We’re on exactly the same page when it comes to powering this rental revolution across Europe and the world.”
Ola Degerfors, CEO of Hygglo added: “This is a really exciting moment for us to come together and create a sophisticated rental platform and enable people across Europe and the U.S. to have more sustainable lifestyles through buying less and renting more.”