Headquartered in Gurugram, Casa2 Stays—the company behind the well-known hospitality chain FabHotels—has successfully acquired a funding amount of Rs 128 crore, equivalent to $15.6 million. The funding round was spearheaded by Panthera Growth Partners, marking a significant capital inflow for FabHotels after a lull of three years.
Boardroom Decisions and Share Allotment
The administrative council at FabHotels took a decisive step by enacting a special resolution. This allowed the issuance of 40 equity shares and 422,877 Series C preference shares. Each share was priced at Rs 3026.1, cumulatively amounting to Rs 128 crore or $15.6 million. This marked a major capital procurement strategy that is destined to influence the company’s roadmap ahead.
Investment Partners and Stakeholding
Panthera Growth Partners was at the forefront of this funding round, contributing a hefty Rs 120 crore. Alongside, Accel India also invested around Rs 8 crore. These details became public in September, as initially reported exclusively by Entrackr.
With this newly acquired capital, Accel has emerged as the principal external stakeholder in FabHotels, holding a stake of 21.39%. This is followed by Goldman Sachs. Panthera, the new investor leading this round, has secured a 10.64% stake. Company co-founders Vaibhav Aggarwal and Adarsh Manpuria collectively hold 25.84% of the shares. For a more in-depth understanding of the stakeholding pattern, one can refer to TheKredible’s detailed cap table analysis.
To date, FabHotels has amassed a total of Rs 514 crore (over $65 million) and is currently valued at approximately $141 million after the finalization of this round, according to estimations from TheKredible.
Strategic Growth: Introducing TravelPlus
In a prior report, Entrackr also touched upon the strategic aspect of this fundraising. Casa2 Stays is gathering capital primarily to accelerate its newly inaugurated business arm, TravelPlus. This brand-new venture serves as a travel and expense management platform. Already, it has forged partnerships with over 350 enterprises, such as Spinny, SpiceJet, Byju’s, Ninjacart, Zomato, and PolicyBazaar, establishing itself as a significant player in the domain.
Financial Health: A Year-over-Year Comparison
While the financial results for FY23 are yet to be announced, FabHotels recorded a revenue of Rs 150 crore in FY22. This demonstrates a marked improvement from the Rs 82 crore revenue generated in FY21. What’s equally noteworthy is the drastic reduction in the company’s losses—down to Rs 5.9 crore from the previous year’s Rs 20 crore. The last funding FabHotels acquired was in October 2020, amounting to around $3 million from Accel and Goldman Sachs.
Market Landscape and Competitors
In terms of competition, FabHotels is closely trailed by Treebo Hotels, which managed to raise $16 million in a Series D round led by French hospitality leader Accor in June 2021. Furthermore, Oyo, a major player in the hospitality space, is reportedly in discussions to secure significant funding. The Gurugram-based giant is also in the process of gaining approval for its much-anticipated Initial Public Offering (IPO).
