Existing investor and investment giant Goldman Sachs has pumped nearly Rs 11 crore in its portfolio company and budget hotel player Fab Hotels. The latest capital infusion is mostly likely part of the Rs 40 crore fund raising tranche that the company had kick-started earlier this year.
Last month, the Gurugram based budget hotel startup secured almost same amount of funding, i.e. Rs 11 crore, from existing investor Accel India. Techpluto had exclusively reported about this news report.
According to the regulatory filings, Fab Hotels has allotted 45,331 series B cumulative preference shares to Goldman Sachs for its contribution of Rs 11 crore. Goldman Sachs has routed the funds through its investment fund Global Opportunities Partner II.
Goldman Sachs is reportedly the largest stakeholder in the Gurugram headquartered company, with its stake hovering around 25%. This is followed by Accel India, which has approximately 24% equity stake in the company.
The startup also counts high-profile investors like RB investment, Qualcomm Ventures and Mohandas Pai among other investors.
Fab Hotels had started the process for latest fund raising tranche much before coronavirus pandemic roiled the hospitality industry. Nonetheless, the back-to-back capital infusion by Accel and Goldman Sachs via series B3 round will help the company in overcoming the challenging times.
In the wake of pandemic challenge, the company is unlikely to add fresh properties in great numbers in coming months. It is also unlikely to burn cash on heavy discount offers.
Treebo, another prominent budget hotel player, is more or less likely to follow the same strategy. Treebo recently also has been on a fundraising spree to overcome the challenging times brought forth by pandemic. Few weeks back, it raised Rs 10 crore from several angel investors including Paytm’s Vijay Shekhar Sharma.