FabHotels Transforms to Public Company

FabHotels, a prominent name in the hospitality sector, has undergone a transformation into a public company. This shift aligns with the board’s approval of the necessary resolution, potentially indicating its intent to prepare for a public listing. The parent company, Travelstack Tech Private Limited, which was previously known as Casa2 Stays Pvt Ltd, has also resolved to change its name to Travelstack Tech Limited, following the removal of the term “Private” as documented in its filing with the Registrar of Companies (RoC).

Overview of FabHotels

Founded in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, FabHotels operates from its base in Gurugram. The hotel chain boasts an impressive portfolio of over 1,300 properties located throughout more than 50 significant cities in India, such as Mumbai, the National Capital Region, Bengaluru, and Goa.

Funding and Financial Performance

According to various sources associated with startup data platforms, FabHotels has successfully secured approximately $68 million from investors, including notable names like Accel and Goldman Sachs. The company’s latest funding round brought in $20 million, led by Panthera Partners in September 2023.

For the financial year FY25, the Accel-backed company reported a revenue increase of over 20%, amounting to Rs 716 crore. Additionally, losses narrowed by 45%, dropping to Rs 62.7 crore compared to Rs 114 crore in the previous financial year FY24.

Competition in the Hospitality Sector

FabHotels finds itself in direct competition with Treebo and Bloom Hotels. Although both competitors have yet to disclose their FY25 figures, Treebo reported revenue surpassing Rs 100 crore in FY24. On the other hand, Bloom Hotels experienced a remarkable 73.6% increase in operating revenue, reaching Rs 250 crore, along with reporting a profit of Rs 14 crore.