FabHotels Announces $25M Series B Investment from Goldman Sachs and Accel Partners
Signal Hill India is pleased to announce that its client, Casa2 Stays Pvt. Ltd. which owns and operates FabHotels.com, a technology-driven budget hotel brand, has raised a $25 million Series B round led by Goldman Sachs Investment Partners, with participation from existing investor Accel Partners.
FabHotels’ franchise model focuses on partnering with 20 – 40 rooms capacity budget hotels. Such unbranded budget hotels, with over one million rooms of capacity, make up the largest and most fragmented hospitality segment in India today. The company uses its proprietary technology platform to deliver superior yields to franchisees and assists in property operations for the delivery of best-in-segment stay experiences to travellers. FabHotels also operates a professional training academy for hotel staff and on the ground quality control teams.
“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, FabHotels. “This investment by Goldman Sachs will further strengthen our market leadership position, brand and expansion plans.”
FabHotels currently operates over 5,000 rooms across more than 225 franchise hotels in over 20 major cities across India, including Mumbai, the National Capital Region and Bengaluru.
“The Signal Hill team led by Klaas & Meherzad, were sound advisors in our fund raise and a pleasure to work with. Their support and counsel helped guide us through the entire process,” said Mr. Aggarwal. “We are very excited about the opportunity in front of us, to scale our business even faster, and we thank the Signal Hill team for their unwavering support throughout this transaction.”
About Signal Hill India
Signal Hill Capital Advisory India Pvt. Ltd. (“Signal Hill India”) is a leading advisory boutique serving the M&A and private capital raising needs of growth companies in the technology sector. Signal Hill India’s experienced bankers provide deep domain expertise and an unyielding commitment to clients in our sectors: Software (Enterprise Software, SaaS/Cloud, FinTech/Payments & IT Security), Internet & Digital Media, and Service (IT Services, BPO, Healthcare IT, Analytics & Education). Signal Hill India has offices in Bangalore and Mumbai. For more information visit www.signalhill.com