British digital renting platform Fat Llama has been acquired by its Swedish competitor Hygglo for $41.5m (£34.5m).
Founded in London in 2016, Fat Llama is a peer-to-peer service where users can list and rent products of any variety, including bikes, drones, cameras and more.
Product owners can name their fees and renters can leave reviews of users lending out products.
Alternative purchasing methods have become a popular market in the UK and beyond. From buy now, pay later (BNPL) to Fat Llama’s rent almost anything platform, customers have been eager to find alternative solutions to expensive purchases.
There is, however, concern from consumer protection groups that BNPL risks customers worsening their financial security, particularly amid the sharp rise in the cost of living.
The acquisition of Fat Llama by fellow renting platform Hygglo will see the creation of a single combined online rental marketplace.
“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,” said Chaz Englander, co-founder of Fat Llama.
Englander said that the priority for the company now is to facilitate a smooth integration into Hygglo’s existing service.
Ola Degerfors, CEO of Hygglo said: “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.”
Fat Llama raised around $13m in funding prior to the Hygglo acquisition, having received funding from Atomico, Y Combinator, Blossom Capital and more.