Budget hotels chain FabHotels has raised $25 million in a Series B funding round led by Goldman Sachs. Existing partners Accel Partners have also participated the funding round.
The Gurugram-based startup was founded in 2015 by Aadharsh Manpuria and Vaibhav Agarwal. Fabhotels is the online aggregator for hotel rooms. It aims to provide standardized services at economical budgets. Fabhotels provides its clients with a budget hotel chain in India. It partners with smaller hotels for providing standardized services to budget travelers.
Commenting on the deal, Vaibhav Aggarwal, co-founder, and CEO, FabHotels, said, “We have built our technology framework and operations with three core objectives: delivering a superior return on investment to our franchise partners, providing consistent high-quality experiences for hotel guests and building a strong sustainable business for everyone involved. This investment by Goldman Sachs Investment Partners will further strengthen our market leadership position, brand and expansion.”
FabHotels’ franchise model focuses on partnering with 20 – 40 rooms capacity budget hotels and has more than 225 franchise hotels in over 20 cities, including Mumbai, the National Capital Region (NCR) and Bengaluru, Such unbranded budget hotels, with over one million rooms of capacity, make up the largest and most fragmented hospitality segment in India today.
Shweta Bhatia, head of Asia’s Growth Equity team at Goldman Sachs Investment Partners, said ” We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption. With technology at its core, FabHotels has scaled significantly within a short duration of time. We expect them to continue to transform and enhance the Indian hospitality marketplace.”
Goldman Sachs is a multinational financial services firm providing securities, and investment banking and management services. They provide services like Investment Bank and Venture Capital that does Seed, Early Stage Venture, Later Stage Venture, Private Equity, and Debt Financing Investments. Read more about Indian Startup Ecosystem.