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Published on : Friday, July 28, 2017
Goldman Sachs Investment Partners, with current investor Accel involved, led this Series B funding. Accel was part of Fab’s $8 million Series A round last June.
Started in 2014, this business today operates like a franchise business. It shares partnership with unbranded budget hotels which then operate under the FabHotels marquee. In return, these hotels get access to Fab’s direct and third party distribution channels. Guests get consistency of service.
Presently, Fab’s estate comprises 225 hotels in 20 Indian cities, providing some 5000 rooms. It is looking more at corporate than leisure guests and is concentrating on building its presence in business hubs.
Goldman’s head of Asia investments at its venture capital and growth equity team Shweta Bhatia said: “We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption.”
The concept of branded online budget hotel aggregators emerged in India only a couple of years ago with OYO rooms as the leader. It has picked up some $200 million in funding so far, led by Japan’s Softbank.