Budget hotel franchise FabHotels has raised $25 million in a Series B investment led by Goldman Sachs Investment Partners, the company said on Wednesday. Accel Partners, an existing investor, also participated in the round. The funds will further accelerate the nationwide expansion of FabHotels, it said.
“This investment by Goldman Sachs will further strengthen our market leadership position, brand and expansion,” said Vaibhav Aggarwal, co-founder and CEO, FabHotels.
“We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption,” said Shweta Bhatia, head of Asia investments at the Venture Capital and Growth Equity team at Goldman Sachs Investment Partners.
FabHotels’ franchise model focusses on partnering with budget hotels having capacity of 20 to 40 rooms. It currently operates over 5,000 rooms across more than 225 franchise hotels including in Mumbai, the National Capital Region and Bengaluru.