Gurugram-based budget hospitality chain FabHotels has made the move towards the public market – transforming itself into a full-fledged public limited company, a clear sign its imminent IPO Plans are just around the corner. The company has got the approval from its Board of Directors and has made a huge leap towards becoming one of India’s fastest-growing budget hotel chains.
Corporate Restructuring for an eventual FabHotels IPO
According to filings, FabHotels’ parent entity, Travelstack Tech Private Limited (formerly Casa2 Stays), has finally ditched the “Private” tag and is now Travelstack Tech Limited. The corporate makeover and conversion clearly indicate that the company is fine-tuning its structure to meet regulatory requirements of a public listing – a clear indication that we could see FabHotels IPO filing in the coming quarters.
Such a move usually comes before the appointment of investment bankers, conducting due diligence and capital market filings with the Securities and Exchange Board of India (SEBI) – a clear sign that FabHotels could be the next one on the list of Indian tech-driven consumer brands heading to Dalal Street.
Decade of Growth: a Story of FabHotels
Founded way back in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, FabHotels has built a fantastic network of over 1,300 properties spread across 50+ Indian cities — cities that are major hospitality markets like Mumbai, Delhi-NCR, Bengaluru, Goa and many more. The company’s business model is all about providing standardised, affordable accommodation options for value-conscious travellers, with a focus on leveraging technology for distribution, pricing, and customer experience.
Financial Performance: Signs of Consolidation
In FY25, FabHotels reported a 20% year-on-year increase in revenue, reaching a magnificent INR 716 crore. More impressively, the company narrowed its net losses by 45% to INR 62.7 crore, a big improvement over INR 114 crore in FY24. This trajectory clearly shows the company’s operational efficiency and potential to move towards profitability – a key requirement for investors looking to invest in companies that have a sustainable growth story in the travel-tech sector.
Until now, FabHotels has received a total of USD 68 million (~INR 602.74 crore) in funding from top investors like Accel and Goldman Sachs, with its latest USD 20 million (~INR 177.28 crore) round led by Panthera Partners coming in just last September 2023.
Competitive Landscape: The Rush in Budget Hospitality
FabHotels operates in India’s highly competitive mid-market housing segment alongside Treebo and Bloom Hotels. Although neither of its rivals has disclosed their FY25 financials yet, Treebo reported a paltry INR 100 crore in revenue for FY24, and Bloom Hotels saw a 73.6% rise in revenue to INR 250 crore, with a profit of INR 14 crore. FabHotels scale and revenue figures clearly show it as the dominant player in this space, even as it continues to work towards profitability and market share expansion.
FabHotels IPO Timing & Market Context
The conversion to a public company comes amid renewed investor interest in Indian consumer tech and travel startups, fueled by a resurgence in domestic tourism and rising disposable incomes. If FabHotels proceeds with its IPO in FY26, it could become one of the few Indian hospitality-tech firms to go public—potentially following the playbook of global peers like OYO, which has also eyed the markets.
Analysts expect that the FabHotels IPO will not only raise growth capital but also strengthen its balance sheet, invest in technology, and expand its network across Tier-2 and Tier-3 cities—an area of growing demand in India’s post-pandemic travel rebound.
Conclusion
FabHotels’ transformation into a public company represents more than a legal change—it’s a strategic inflection point. With improving financials, strong investor backing, and a maturing business model, the company appears well-positioned to tap public markets. As India’s hospitality sector undergoes digital and structural evolution, FabHotels’ journey from startup to soon-to-be-listed enterprise reflects both the resilience and the ambition of India’s new-age travel ecosystem.
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