The branded budget hotel war just got a little spicier as FabHotels, formerly Casa2Inns received funds worth $5 million from Flipkart investor Accel Partners and Kalaari Capital. On the other hand, Tiger Global Management and Orios Venture Partners may soon be closing a funding round with Zo Rooms that is worth $10 million.
Both the accommodation startups are designed to work on asset-light models where they join hands with smaller hotels, provide them with a brand name and give standardized services to budget tourists. Currently, Gurgaon-based Oyo Rooms leads the market with talks of a $100 million financing round.
“We are not merely aggregating rooms, but delivering a wholesome hospitality experience to our guests. Technology can play a more encompassing role in delivering the right experience in the hospitality industry,” said Vaibhav Aggrawal, co-founder of FabHotels.
FabHotels is currently present in six cities with more than 50 hotels under its roster and plans to use the funds received to strengthen its foothold in the pan-India market to further invest in consumer and operator facing technology.
“Today’s aspirational traveller is really sensitive to the experience and lowest price is not the primary decision criterion. We are also convinced that technology is broken in hospitality industry and only a player offering a full range can comprehensively solve that problem,” said Prashanth Prakash, Partner, Accel Partners.
