- Rent It Bae has acquired Flyrobe peer fashion rental services startup to consolidate operations, ramp up its omnichannel footprint and tap the overseas market.
- “The two start-ups ‘ recent deal is part cash and part stock. At Rs 60 crore, the new combined business is being valued, “Aanchal Saini, Rent It Bae’s former CEO and Flyrobe’s new CEO.
Rent It Bae has acquired Flyrobe peer fashion rental services startup to consolidate operations, ramp up its omnichannel footprint and tap the overseas market.
AARK World, which owns and operates Rent It Bae, said both companies are merging and will be operating under the Flyrobe brand.
It was not immediately known as the value of the contract. It is expected that the alliance that was stitched up last week will be announced in the coming days.
“The two start-ups ‘ recent deal is part cash and part stock. At Rs 60 crore, the new combined business is being valued, “Aanchal Saini, Rent It Bae’s former CEO and Flyrobe’s new CEO.
“While our business approach remains omnichannel, we find enormous potential from our experience with offline stores… We are looking to connect franchise stores in about 30 different cities across India with local partners who have deep knowledge of their respective markets.” Co-founded in September 2015 by three IIT Bombay alumni, Flyrobe was funded by Sequoia Capital, IDG Ventures (now Chiratae Ventures) and GREE Ventures (now STRIVE) based in Tokyo, raising $10 million in two rounds. After early investment from Vijay Shekhar Sharma, Sandeep Tandon, Kunal Shah, Zishaan Hayath, Rohit Bansal, Kunal Bahl, and Abhishek Jain., Flyrobe raised Rs 26 crore from existing investors in the latest round.
AARK World, based in New Delhi, said it raised funds from established investor GEMS Partners, a micro VC fund, and is set to launch a $3 million larger Series A round. GREE Ventures (STRIVE) continues to be invested in the combined company.
“We aim to put the business back on the growth trajectory and steer it to profitability in the next 12 months,” Flyrobe Chief Strategy Officer Pranay Surana said.
“With rising penetration of internet, increasing ease of use of online shopping, and increasing allure of millennials towards high-end fashion clothing without owning expensive assets, there is a lot of growth potential in this segment. Ethnic clothing and accessories on rental, especially for weddings and religious functions, are a big growth area,” said Sanjay Arora, business director of consultancy firm Wazir Advisors.
Flyrobe claims that with more than 1,800 curators on board, it has facilitated the largest customer-to-customer rental marketplace (inventory curated from individual closets). The company has five physical brand stores and plans to start 10 franchise stores.