FabHotels, a budget hotel franchise, announced that it has raised $25 million in a Series B investment led by Goldman Sachs Investment Partners. The funds will speed up the nationwide expansion of FabHotels.
FabHotels partners up with 20 – 40 rooms capacity budget hotels. Such unbranded budget hotels combine together to make up the largest and most fragmented hospitality segment in India today.
What the CEO has to say
“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,” said Vaibhav Aggarwal, co-founder and CEO of FabHotels. Further he added that “This investment by Goldman Sachs Investment Partners will further strengthen our market leadership position, brand and expansion.”
How FabHotels obtained the deal?
Sweta Bhatia, Head of Asia investments at Goldman Sachs said “We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption,”
She also added “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.”