Indian budget hotel chain FabHotels has raised INR 54 Cr. (around $7.8 Mn) from existing investor Goldman Sachs along with marquee venture capital firms Qualcomm Ventures, and Accel Partners India, who is one of the early backers of the Delhi-based company.
According to Ministry of Corporate filings accessed by Inc42, Goldman Sachs has acquired 143K shares in the company against a premium of about $35 (INR 2422.1) per share. The total investment made by the American investment bank amounted to around $5 Mn (INR 34.8 Cr).
Accel India invested approximately $2.5 Mn (INR 17 Cr) to acquire 71.6K shares. While Qualcomm Ventures has invested about $301K (INR 2.08 Cr) to acquire 8.5K shares in the company. This development was first reported by a data analytics platform, paper.vc.
FabHotels is a hotel booking platform which operates through franchising arrangements with budget hotels across India. Founded by Adarsh Manpuria and Vaibhav Aggarwal in 2014, FabHotels had raised a total of $42.8 Mn funding till now. It has last raised a $25 Mn Series B round from Goldman Sachs and Accel Partners in 2017. Other investors in the company include Kalaari Capital, RB Investments, and Mohandas Pai-owned Aarin Capital.
In December 2018, FabHotels has claimed to have about 10K hotel rooms across 450 franchising hotels in 40 Indian cities and shared plans to double its inventory to 20K rooms in 2019. Aggarwal had also shared plans to expand into another 20 business and leisure cities such as Manali, Shimla, Vadodara, Coorg, Raipur and Nagpur.
Read Original Article