Realty portal #commonfloor has acquired student accommodation portal, Flat.to, in a deal that includes both cash and stock components.
“Sumit has been mentoring us for a very long time now. We were planning on raising another round to further our company, and that’s when we decided to merge it with CommonFloor, since we had common interests as well,” says Gaurav Munjal, Founder, Flat.to.
Aakrit Vaish, the company’s co-founder and angel investor will exit upon acquisition.
Post acquisition, Flat.to plan on using CommonFloor’s resources to expand across the 18 cities in which CommonFloor currently operates. Flat.to will continue to function independently, and autonomously said Gaurav.
Flat.to was started by former software engineer, 23 year old Gaurav Munjal and Aakrit Vaish in 2013. It had raised angel funding from Vaish in 2013. The startup helps students find accommodation that are available for bachelors.
The startup claims to have helped 7,000 students find accommodation and has 7,000-8,000 listings aboard it.
CommonFloor themselves had recently raised Rs 64 Cr funding in a Series D round. Since 2011, CommonFloor already already has a team size of over 600 people and is eyeing profitability next year. With the move, CommonFloor will enter the fast growing student accommodation space in major metros.
The acquisition can be a signal for more consolidation in the space with major housing portals having received fresh rounds of funding recently. CommonFloor’s rival Housing.com had last raised funding in June 2013, from Nexus Venture Partners.
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