Travelstack Tech, the parent company of budget hotel chain FabHotels, has taken a significant step towards entering the public markets by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) is aimed at raising up to ₹250 crore through a fresh issue of equity shares, marking a major milestone in the company’s growth journey and signalling its readiness to scale operations further.
The IPO filing comes at a time when India’s travel and hospitality sector is witnessing a steady recovery and renewed demand, particularly in corporate travel and affordable accommodation. Travelstack Tech’s move reflects growing investor interest in asset-light, tech-enabled hospitality platforms that focus on efficiency and scale.
IPO Structure and Share Sale Details
As per the DRHP, the public issue will primarily consist of a fresh issue of equity shares worth ₹250 crore. In addition to this, the IPO will include an Offer for Sale (OFS) by existing shareholders, allowing early investors and promoters to partially monetise their holdings.
The OFS is expected to see participation from the company’s founders as well as several well-known institutional investors who backed the company in its early and growth stages. While the fresh issue will bring new capital into the business, the OFS will not result in any additional funds for the company but will provide liquidity to existing shareholders.
How the Company Plans to Use the Funds
Travelstack Tech plans to utilise the proceeds from the fresh issue to strengthen its working capital position and reduce existing debt. A portion of the funds will also be allocated towards general corporate purposes, which may include technology upgrades, operational improvements, and expansion initiatives.
By improving its balance sheet and reducing borrowings, the company aims to enhance financial stability and create a stronger foundation for long-term growth in a competitive market.
Business Model and Key Platforms
Travelstack Tech operates across multiple segments within the travel and hospitality ecosystem. One of its core offerings is TravelPlus, a hotel-focused corporate travel management platform. TravelPlus helps enterprises manage hotel bookings, approvals, expense tracking, and compliance through a single integrated system.
The platform has gained strong traction among enterprise clients and serves hundreds of companies across India. Its customer base includes listed companies, multinational corporations, and fast-growing Indian enterprises from sectors such as IT, manufacturing, pharmaceuticals, and consumer goods.
In addition, the company manages a large network of partner hotels across India, enabling it to offer wide coverage in both business and leisure destinations.
FabHotels and Brand Expansion
FabHotels, launched in 2014, is one of India’s well-known budget hotel brands. The company follows an asset-light model, partnering with property owners while focusing on standardisation, branding, and technology-driven operations. This approach has allowed FabHotels to expand rapidly without heavy capital expenditure.
To cater to a wider audience, Travelstack Tech has also introduced a value-segment brand called Via, aimed at budget-conscious travellers seeking reliable and affordable stays. Together, FabHotels and Via operate across a large number of properties in key cities and travel hubs across the country.
Financial Performance and Growth Trends
In recent years, Travelstack Tech has shown notable improvement in its financial performance. The company has significantly narrowed its losses and reported strong growth in operating revenue, supported by higher demand, better cost control, and improved operational efficiency.
For the recent reporting period, the company also posted a profit, aided in part by accounting adjustments, while its core operations continued to show progress towards sustainable profitability. Management believes that scale, repeat enterprise clients, and technology-led efficiencies will further improve margins over time.
What the IPO Means for the Market
Travelstack Tech’s IPO filing adds to the growing list of new-age Indian companies exploring public listings. With rising corporate travel, increased domestic tourism, and a preference for organised budget accommodation, the company is well positioned to benefit from long-term industry trends.
As the IPO process moves forward, market participants will closely watch pricing, investor response, and the company’s future growth strategy. If successful, the listing could provide Travelstack Tech with the capital and visibility needed to strengthen its position in India’s evolving travel and hospitality landscape.