Casa2 Stays, the India-based, corporate-backed operator of budget hotel network FabHotels.com, has raised $25m in a series B round led by Goldman Sachs Investment Partners, part of investment banking firm Goldman Sachs.
The round also featured Accel, the venture capital firm that backed the company’s $8m series A round in June 2016 along with Qualcomm Ventures, the investment arm of mobile semiconductor producer Qualcomm, as well as Aarin Capital and RB Investments.
FabHotels is attempting to build a substantial stake in India’s budget hotel space through a franchise model that gives franchisees access to technology that helps them increase returns and offer better services to customers.
The company focuses on places with 20 to 40 rooms, and currently operates more than 5,000 rooms in franchise hotels in 20 Indian cities.
Vaibhav Aggarwal, co-founder and chief executive of FabHotels, said: “This investment by Goldman Sachs will further strengthen our market leadership position, brand and expansion plans.”
Advisory boutique Signal Hill India advised Casa2 Stays for the round. Qualcomm Ventures and Accel had originally contributed to the company’s $2.25m seed round in mid-2015.