FabHotels raises $25 mn from Goldman Sachs, Accel Partners

Budget hotel aggregator FabHotels today said it has raised USD 25 million in a Series B investment round led by Goldman Sachs Investment Partners.

Existing investor Accel Partners also participated in this funding round.

The funds will further accelerate the nationwide expansion plans of FabHotels, a company release said.

FabHotels currently operates over 5,000 rooms across more than 225 franchise hotels in over 20 major cities in India.

"This investment by Goldman Sachs Investment Partners will further strengthen our market leadership position, brand and expansion," FabHotels co-founder and CEO Vaibhav Aggarwal said.

FabHotels' franchise model focuses on partnering with 20 - 40 rooms capacity budget hotels. The company uses its proprietary technology platform to deliver superior yields to franchisees and assists in property operations for delivery of best-in-segment stay experiences to travellers, the company said.

"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.

Goldman Sachs Investment Partners and Growth Equity team partners with entrepreneurs around the world to build disruptive businesses. Since 2003, the team has invested more than USD 6 billion in private opportunities globally.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)