Existing investor Accel Partners also participated in this funding round.
The funds will further accelerate the nationwide expansion plans of FabHotels, a company release said.
FabHotels' franchise model focuses on partnering with 20 - 40 rooms capacity budget hotels. The company uses its proprietary technology platform to deliver superior yields to franchisees and assists in property operations for delivery of best-in-segment stay experiences to travellers, the company said.
"We see significant growth potential in the budget lodging market in India and believe it is ripe for disruption," said Shweta Bhatia, head of Asia investments at the Venture Capital and Growth Equity team at Goldman Sachs Investment Partners.
Goldman Sachs Investment Partners and Growth Equity team partners with entrepreneurs around the world to build disruptive businesses. Since 2003, the team has invested more than $6 billion in private opportunities globally.