UK-based rental platform Fat Llama, has been acquired for $41.5M by Swedish-based online rental marketplace Hygglo to create one of the largest peer-to-peer rental platforms in the world.
Because of this success, Fat Llama was approached by Canadian peer Ruckify last year about a merger and combined stock market listing. Hygglo approached Fat Llama for an acquisition after the deal fell through.
Hygglo will acquire Fat Llama’s team, operations, software, and branding as part of the deal. Fat Llama’s name will be retained in the UK, US, and any new markets in mainland Europe, while co-founders Chaz Englander and Rosie Dallas will help oversee the integration and sit on the new board.
Fat Llama functioning
Chaz Englander, Rosie Dallas, and Owen Turner-Major founded Fat Llama in London in 2016. Customers use the platform to rent items such as campaign equipment, cameras, drones, and even paddling pools, which have over 350,000 items listed for rent. Its top lender earned more than £250,000 in 2021, and its top 500+ lenders regularly earn more than £12,000 per year in additional income. Fat Llama lenders have used their platform earnings to save for weddings, house deposits, and vacations.
By joining forces with Hygglo, the two companies will form the largest European peer-to-peer rental platform, allowing them to serve more customers across Europe and the United States, the company said in a statement. By unlocking new categories and customers, the combined business will be able to grow more efficiently and at scale, helping to transform ownership approaches around the world. Together, they will develop a new ownership model that will enable more people to become self-sufficient while also empowering people to profit from the assets they already own.
Chaz Englander, co-founder at Fat Llama, said: “We’ve built a brilliant business and team at Fat Llama and I’m so proud of everything we’ve achieved so far. 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. Founding and scaling a startup isn’t an easy thing to do but it’s an incredibly rewarding experience and this is a great moment for us to celebrate everything we’ve achieved so far. Our priority now is on smoothly integrating Fat Llama into Hygglo but Rosie and I are both entrepreneurs first and foremost and we’re excited about what the future holds for us.”
Rosie Dallas, co-founder at Fat Llama, said: “In 2016 we set out with a vision to create this brilliant service that makes everything rentable. It’s been an amazing journey to build Fat Llama to the point where it is now and we’re delighted to be acquired by Hygglo, a business that shares our values and desires to transform consumer ownership. We have a long way to go and it’s not going to be easy but together we can make a difference in the world and achieve this goal.”
Ola Degerfors, CEO at Hygglo, said: “I’m delighted that Hygglo is acquiring Fat Llama and to combine our two amazing businesses. Chaz and Rosie have built Fat Llama into an incredible company, with advanced verification technology, great design and a loyal customer base of both renters and lenders. This is a really exciting moment for us to come together and create the world’s biggest and most sophisticated rental platform and enable people across Europe and the US to have more sustainable lifestyles through buying less and renting more.”