FabHotels Converts into Public Company: Preparing for IPO

Hospitality chain FabHotels has officially transitioned into a public company, following a board resolution approving the change, a step widely seen as laying the groundwork for a potential public listing. Its parent company, Travelstack Tech Private Limited (formerly Casa2 Stays Pvt Ltd), has also passed a resolution to drop “Private” from its name, rebranding itself as Travelstack Tech Limited, as per filings with the Registrar of Companies (RoC).

Investment by Accel and Goldman Sachs 

As per Entrackr, FabHotels has raised approximately $68 million from investors such as Accel and Goldman Sachs, with its latest funding round of a $20 million investment led by Panthera Partners closed in September 2023.

About FabHotels

Founded in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, Gurugram-based FabHotels operates a network of over 1,300 properties across more than 50 major Indian cities, including Mumbai, Bengaluru, Goa, and the National Capital Region.

Financially, the Accel-backed chain recorded a 20% revenue growth in FY25, reaching ₹716 crore, while significantly narrowing losses by 45% to ₹62.7 crore compared to ₹114 crore in FY24.

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FabHotels competes with peers like Treebo and Bloom Hotels. While their FY25 figures are yet to be reported, Treebo had surpassed ₹100 crore in revenue in FY24, and Bloom Hotels posted a 73.6% jump in operating revenue to ₹250 crore, alongside a profit of ₹14 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.