London-based tech platform Fat Llama has been acquired in a £34.5m deal.
Fat Llama allows users to list and rent items including bikes, drones and cameras. They can leave reviews about the products rented.
Swedish rival Hygglo has set its sights on acquiring the London-based company and will create a single, unified online rental marketplace with the Fat Llama brand retained in the UK and US.
Founded in 2016 by Chaz Englander and Rosie Dallas, the company previously received $13 million in funding from the likes of Atomico, Y Combinator, and Blossom Capital.
“I could not imagine a better future for the business than this acquisition with Hygglo. We are on the same page when it comes to this rental revolution in Europe and the world,” Englander said.
Fat Llama, which currently lists 350,000 items available for rent, says one of its members earned £250,000 renting out items last year.
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The company has seen a spike in rental demand during COVID-19. Last year, he made a profit for the first time.
Ola Degerfors, CEO of Hygglo, added: “Chaz and Rosie have built Fat Llama into an incredible company with cutting-edge inspection technology, stunning design and a loyal customer base of both tenants and lenders.
“It’s a really exciting time for us to come together and create the largest and most advanced rental platform in the world and enable people across Europe and the US to live a more sustainable lifestyle by buying less and renting more.”
A proposed merger between Fat Llama and Canadian firm Ruckify was called off late last year.
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