Branded budget hotels aggregator Fabhotels has reported a loss of about Rs13 crore for FY16, as compared to a loss of Rs26.95 lakh it incurred during the previous fiscal.
The results assume significance as the start-up is reportedly in the midst of a talk with Nasdaq listed MakeMyTrip for a strategic investment enabling the later to take on the Softbank funded Oyo rooms in hotel booking business segment.
Fabhotels which is backed by Accel Partners, Qualcomm Ventures and Mohandas Pai’s Aarin Capital, witnessed this increase in loss despite its revenue rising to Rs20.9 crore in FY16, from Rs70 lakh in FY15, as shown in recent RoC filings.
Casa2 Stays Private Limited that runs Fabhotels competes with the likes of Oyo rooms, Treebo, AirBnB, HeyBnB and others. Recently MakeMyTrip raised $330 million from its existing investors and the company stated that it will use the fund largely for inorganic growth.
It was just last year, MakeMyTrip merged with the Naspers-backed Goibibo – the biggest consolidation till date to have come through in the Indian online travel market. If the deal with Fabhotels gets through, it would create one of India’s largest online groups in the travel and accommodation segment.
Online travel agencies like Yatra and MakeMyTrip charge commission from the likes of FabHotels for listing on their platforms. Recently Bangalore-based Treebo which used to list its properties on MakeMyTrip got itself delisted from the portal on issues related to commission rates. Even Goibibo and MakeMyTrip delisted Oyo in 2015.
-Sameer Ranjan Bakshi