DC Advisory 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. 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 DC Advisory India 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. We are very excited about the opportunity in front of us, to scale our business even faster, and we thank the DC team for their unwavering support throughout this transaction. 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. This investment by Goldman Sachs will further strengthen our market leadership position, brand and expansion plans.