Fabhotels parent Travelstack Tech moves toward IPO, files DRHP to raise Rs 250 crore via fresh issue

Travel technology company Travelstack Tech has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

According to the DRHP, the proposed IPO comprises a fresh issue of equity shares worth up to Rs 250 crore and an offer for sale (OFS) of 26,852,969 equity shares.

The OFS will see promoters Vaibhav Aggarwal and Adarssh Mnpuria, along with a clutch of existing investors, pare their holdings. These include Accel India IV (Mauritius) Ltd, Global Private Opportunities Partners II LP and its offshore holding entity, Panthera Growth II and Panthera Growth Fund II VCC, PGP India Growth Fund I, Qualcomm Asia Pacific Pte Ltd, XTO10X Mauritius, and Shaadi.com founder Anupam Mittal. Goldman Sachs-backed entities are also participating in the OFS through their private equity funds.

The company plans to use proceeds from the fresh issue to fund working capital requirements, repay or prepay certain borrowings, and meet general corporate expenses.

Motilal Oswal Investment Advisor, Nuvama Wealth Management, and IIFL Capital Services are the book-running lead managers to the issue, while MUFG Intime India has been appointed as the registrar.

Travelstack Tech operates TravelPlus, which it describes as India’s largest hotel-focused corporate travel management platform for enterprise clients by revenue in FY25. The platform enables enterprises to book travel, manage approvals, process expenses, and receive end-to-end support across the travel lifecycle. While hotels remain its core focus, TravelPlus also offers solutions for flights, ground transportation, and MICE travel.

In the first half of FY26, TravelPlus served 474 enterprise clients, including more than 100 NSE-listed companies and over 50 multinational corporations. Its client roster includes companies such as Eternal, including Blinkit and other group entities, Astral, Emcure Pharmaceuticals, Comviva, Jyothy Labs, AB InBev, NIIT, Tata Projects, Titan Company, Shalimar Paints, Zepto, Ujjivan Small Finance Bank, Infra.Market, and UnifyApps.

As of September 30, 2025, more than 100 active enterprise clients had embedded their corporate travel policies on TravelPlus, covering over 1.2 lakh employees. The platform operates through a managed marketplace of over 25,000 active hotels across India, spanning premium and economy segments.

FabHotels, launched in 2014, is a budget hotel chain offering standardised and affordable accommodation. Travelstack is also the parent of FabHotels and the recently introduced value-segment hotel brand Via.

As of September 30, 2025, the company operated 1,379 properties under the FabHotels and Via brands.

“To serve distinct customer groups and optimise inventory within this segment, we maintain a strategic asset light private-label portfolio comprising FabHotels and Via brands, which cumulatively included 1,379 onboarded properties as of September 30, 2025,” the DRHP said.

On the financial front, Travelstack turned profitable ahead of filing its DRHP. The company reported a net profit of Rs 32.2 crore in the six months ended September 30, 2025, with operating revenue of Rs 400.4 crore and total expenses of Rs 409.6 crore. The profit was aided by a deferred tax gain of Rs 37.4 crore, without which the company would have reported a loss during the period.

In FY25, Travelstack reduced its net loss by 95% to Rs 6.3 crore from Rs 114.1 crore in FY24. Operating revenue rose 31% year-on-year to Rs 716.4 crore,