Owned by Casa2 Stays budget hotel chain, FabHotels, experienced a 48% growth in income during FY23 to 219 crore, up from 148 crore in FY22, reported by the financial statements filed with the Registrar of Companies. The company has cut down their losses by 16.7% to 5 crore in FY23, down from 6 crore it incurred in FY22.

The revenue from bookings accounted for 75% of its total operating collection, reaching 164 crore in FY23. The remainder of its income came from sales and marketing fees. Non-operating activities also contributed 12 crore to the company’s income.

The accommodation cost stands 59% of FabHotels’ overall expenditure, which rose by 30.8% y-o-y to 140 crore in FY23. Other expanses like employee benefits, commissions, website development, and legal/professional fees led to a total cost increase of 47.5% to 236 crore.

The company’s ROCE and EBITDA margin goes up to -33% and -1.7% respectively, while on a unit level, it spent 1.08 to earn a rupee in FY23.

After raising $65 million across rounds, FabHotels has earned a valuation of around $141 million. Their major shareholders are Accel, Goldman Sachs, and Panthera Growth Partners, along with co-founders Vaibhav Aggarwal and Adarssh Mnpuria.

The company currently working with 600 properties across 50 Indian cities,and its main competitors are Oyo and Treebo, along with other mid-segment independent chains. In FY23, one of its strongest competitors, Oyo recorded a revenue of 5,464 with its IPO. On the other hand, FabHotels, supported by Accor, reported an income of 89 crore and a loss of 3.6 crore in FY23.

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