Panthera Capital led the $20 million funding round of Casa2 Stays, the parent company that runs Fab Hotels. The company's existing partners also joined this round, people aware of the development told Entrackr.

FabHotels will use this capital infusion to scale up its new vertical, TravelPlus. The company has built a separate team of around 120 employees for this division arm in the past few months. Engaged in travel and expense management, it has tied up with more than 350 companies, such as Spinny, SpiceJet, Byju's, Ninjakart, Zomato, and PolicyBazaar, to facilitate hotel bookings across India.

FabHotels will also use the capital it has raised for the expansion of its hotel chain. Recently, the budget-focused brand added over 100 premium hotels to its collection.

Founded in 2015 by Adarsh Manpuria and Vaibhav Aggrawal, the hospitality company provides its services in over 80 cities and owns more than 1,500 hotels. Its revenue for FY22 and FY21 stood at Rs 150 crore and Rs 82 crore, respectively. 

In 2019, the company raised Rs 54 crore from global investors such as Goldman Sachs, Qualcomm Ventures, and Accel Partners India.