Layoffs at FabHotels: COVID-19 Impact on Hospitality Industry


FabHotels is a rapidly growing Indian startup that aims to provide budget-friendly accommodation to its customers. Founded in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, FabHotels started its journey as a network of small hotels, offering standardized services to its guests. Since then, the company has grown significantly and has become a well-known player in the Indian hospitality industry.

History and Funding

FabHotels began operations in 2014 with a pilot project in Gurgaon. The startup received its first round of funding worth $5 million from Accel Partners and RB Investments in August 2015. The company raised its Series A round of funding worth $8 million in January 2017 from Accel Partners and Goldman Sachs.

The Series B funding round was a significant milestone for FabHotels, as the company raised $48 million in May 2019, led by Goldman Sachs and Accel Partners. This funding round enabled the company to expand its operations and strengthen its position in the Indian hospitality industry.

Performance of FabHotels

FabHotels has been growing consistently since its inception, and the company claims to have a presence in over 45 cities in India. The startup offers standard facilities and services to its customers at affordable prices, thus catering to the needs of budget-conscious travelers.

Despite a highly competitive hospitality industry in India, FabHotels has managed to build a strong brand reputation and a loyal customer base. The company has also been recognized for its excellence in customer service and has won several awards in the hospitality industry.

Reason for Layoffs

In March 2020, the COVID-19 pandemic hit India, and the entire nation went into lockdown. The hospitality industry was one of the worst-hit industries, as people stopped traveling altogether. FabHotels was no exception to this trend, and the company had to make tough decisions to stay afloat during these challenging times.

On March 30, 2020, FabHotels announced that it would be laying off 80 employees, which amounted to 20% of its total workforce. The decision was made in response to the unprecedented and unforeseen impact of COVID-19 on the company’s business and revenues.

Statement of Stakeholders

In response to the layoffs, FabHotels CEO Vaibhav Aggarwal released a statement. He acknowledged the pain and stress that the affected employees were going through and said that the company would do everything possible to support them in this difficult time.

Aggarwal added that FabHotels was forced to take this painful decision due to the disruption in the hospitality industry caused by the COVID-19 pandemic. He further stated that the company was taking measures to ensure the stability of its business and was committed to supporting its customers and partners.


Layoffs are never easy, and the COVID-19 pandemic has made it even more challenging for companies to navigate through these times. FabHotels, like many other companies, had to make tough decisions to ensure the survival of its business. To support its employees and partners, the company has taken several measures and is committed to coming out of these difficult times stronger and more resilient.

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