Gurugram-based home rental startup ZiffyHomes appears to have hit a difficult situation as it struggles with monetary hurdles attributable to the pandemic, with its website currently returning an error message.
The organization is in its last leg to wrap up its operations is the thing that four persons acquainted with the operations of the organization have toldin an interview.
The organization has been confronting monetary difficulties due to COVID since a year ago, however its perils have aggravated in the previous a few months. Hence, the organization had laid off a large portion of its workforce and discontinued lease with properties, said one of the sources requesting obscurity.
However, the organization has denied a complete closure and said that it has essentially reduced its operations and required to be postponed any new customer augmentations and marketing spends.
ZiffyHomes has not closed down the operations however reduced its operations in line with the present demand. We actually have multiple operating properties with tenants. The organization legal entity is as yet active as on date, Saurabh Kumar, prime supporter of ZiffyHomes, told Entrackr in an emailed statement.
When asked why its website was not working, Kumar said that it has been down throughout the previous three days because of certain huge changes in the business stream and item in line with COVID-19.
The customer care isn’t filling in as of now as we are not selling any new properties or obtaining new customers at the moment. The operational properties have the manpower to handle every one of the customers remaining at the properties, Kumar added.
The explanation by the organization does raise a question: how does a tech-enabled service organization operate without a website and a customer care unit?
Sources likewise said that customers and vendors have been running from column to post for refunds and payments. This is additionally evident from the organization’s web-based media dividers where people have been pleading for refunds.
A year ago, Mint had reported that the Y Combinator-backed organization had deferred payments of several vendors and was thinking that its hard to pay for its leased properties in the midst of the Covid emergency.
The organization has been confronting a reaction from its users to return the tenants’ security deposit as well. Kumar acknowledged the issue and said that refunds have been delayed due to the effect on income yet the organization is steadily giving refunds.
There was a huge effect on revenues because of critical move-outs in the primary wave and the business never getting post that, Kumar said.
Besides Y Combinator, ZiffyHomes has raised capital from Trade India’s promoter Bikky Khosla and Anirudh Agarwal, MD of Shree Sharda Group. It likewise acquired two little companies Fella Homes and Nivassa Resident in the public capital region.
While the pandemic has disrupted the operations of generally home and office rental new companies, New Delhi-based Stanza Living had recently raised over $100 million led by Falcon Edge with investment from existing backers Sequoia Capital and Matrix Partners.