FabHotels is looking to raise ₹39 crores from Goldman Sachs, Accel, RB Investments

Gurugram-based new age budget hotel brand FabHotels is looking to raise ₹39 crores from existing investors Goldman Sachs, Accel India and RB Investments, reported Entrackr.

FabHotels has issued 1,28,034 Series B2 compulsorily convertible preference shares (CCPS) for its Series B2 funding round. Following the funding, the hotel brand will be valued at around ₹850 crores.

After the round, Goldman Sachs with 25.64% stake will become the largest shareholder, followed by Accel with 24.68% and FabHotel’s founder and CEO Vaibhav Aggarwal will be the third-largest stakeholder with 18.72% stake in the company.

Earlier in June 2019, FabHotels had raised $7.8 million from Goldman Sachs, Qualcomm and Accel.

Founded by Vaibhav Aggarwal and Adarsh Manpuria in 2014, FabHotels has an inventory of over 600 hotels across 50 Indian cities. The hotel brand is using technology to offer reliable and affordable rooms to its customers while ensuring a hassle-free experience.

In the budget hotel domain, FabHotel competes with the likes of Indian hospitality giant Oyo, Treebo, Vista Rooms, among others.

Earlier today, it was reported that SoftBank has set a deadline for Oyo to phase out unprofitable businesses before its IPO in 2022-2023. With Oyo’s IPO date approaching closer, its Japanese backer SoftBank is looking to smooth out things amidst reports of Oyo’s toxic culture.

In December 2019, Oyo raised a massive $1.5 billion from SoftBank and Ritesh Agarwal.

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