Goldman, Accel invest $25m in India's FabHotels

FabHotels operates more than 225 franchise hotels in 20 cities across India, with over 5,000 rooms in total. The company will use the new capital to accelerate its nationwide expansion by adding more partner hotels and improving its brand awareness.

Founded in 2014, FabHotels operates by partnering with unbranded budget hotels with a capacity of 20-40 rooms. This type of hotel is estimated to comprise more than one million rooms across India and to be the most fragmented segment of the country’s hospitality market. FabHotel helps connect partner hotels with customers via its online platform. It also operates a training academy for hotel staff.

“We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption,” Shweta Bhatia, head of Asia venture capital and growth equity investments at Goldman Sachs, said in a statement. “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.”

AVCJ Research's records shows two previous funding rounds for FabHotels, both of which featured Accel. The firm joined Kalaari Capital to commit $5 million to the company in 2015, and took part in an $8 million round the following year alongside Aarin Capital, Qualcomm Ventures and RB Investments.

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• Topics
• South Asia
• Technology
• Consumer
• Early-stage
• India
• TMT
• Accel Partners
• Goldman Sachs
• Venture