And company executives are said to have already begun talks with competitors Oyo and NestAway.
Grabhouse has raised US$10 million in a recent funding round and also raised approximately $2.5 million from Sequoia Capital and Kalaari Capital. In its seed funding round, the company secured around $500,000.
The rumoured current buyout deal is estimated at $5 million to $8 million.
Grabhouse currently operates in 11 cities, including Bengaluru, Mumbai, Delhi, Gurgaon, Chennai and Kolkata and in December 2015 laid off around 100 employees as a part of its restructuring process.
The portal has also put their present office in Bangalore on notice. They are likely to either vacate the premises by the end of September or find another company to share the office space.