Online budget hotel marketplace FabHotels raises USD 25M for Series B
FabHotels
Founders: Vaibhav Aggarwal, Adarsh Manpuria
Founded in: 2014
Financing status: USD 25 million for Series B round in 2017
Budget hotel brand FabHotels recently raised USD 25 million for Series B round led by Goldman Sachs. Existing investor, Accel Partners, also participated in the round.
FabHotels was founded in 2014 by Wharton school alumni, Vaibhav Aggarwal, and Adarsh Manpuria. Vaibhav previously worked as co-founder at FabFurnish, a Rocket Internet company. Adarsh also previously worked at Rocket Internet as a Venture Development Associate.
FabHotels is an online budget hotels platform. It aggregates hotels to provide budget accommodation solutions to customers in India. The platform has more than 225 hotels with 5,000 rooms in over 20 cities including New Delhi, Mumbai, Chennai, Bangalore etc. FabHotels follows a light-asset business approach with a franchise model.
Co-founder and CEO, Vaibhav said that the unbranded budget hotels, with over one million rooms of capacity, make up the largest and most fragmented hospitality segment in India. He added that they don’t have a plan to expand to tourist cities but are focusing on business hotel destinations within the top 30 cities.
The company will use the newly raised investment to double the number of hotel rooms and strengthen its marketing.
Other players in this area in India include Mumbai-based Vista Rooms, Gurugram-based OYO Rooms, Qik Stay, RedDoorz, and Treebo.
(Top photo from FabHotels website)
