Budget accommodation startup, FabHotels, formerly Casa2Inns, has raised $5 million from Accel Partners and Kalaari Capital. The firm plans to use the raised funds to establish a pan-India footprint and further invest in consumer and operator facing technology.
Started in 2012 by Vaibhav Aggarwal and Adarsh Manpuria, FabHotels is currently spread across six cities with over 50 hotels on its platform. ET also reported that, Tiger Global, along with Orios Venture Partners, may be closing a $10-million financing round in Zo Rooms, and a few days back there were rumors that Softbank is investing $100 million in Oyo Rooms, which is functional across 15 cities with 4000 budget hotel rooms on its platform.
When contacted, Paavan Nanda, Co-founder of Zo Rooms declined to comment on this funding. However, he said, “We are solving a real problem by building a reliable hyper-local brand that offers all the necessary amenities required by today’s budget traveller.” India has close to 10 lakh budget hotel rooms and almost 80% of these are unbranded, Nanda claimed.
Stayzilla is another player which also operating in similar space, raised a $20 million series B round of funding from Nexus Capital & existing investors Matrix Partners in February this year.