New Delhi, April 20 -- India's hotel boom is no longer being driven by large chains with marquee assets. A quieter shift is underway in the country's vast unbranded hotel market.

Vikramjit Singh, founder of Ananta Capital-backed Alivaa Hotels and Resorts, is building the company's playbook around this concept and is now looking to raise $4 million to expand.

Less than two years since starting operations, Alivaa Hotels has expanded by franchising its brands to small, owner-run hotels that struggle with distribution rather than cost or quality. In about a year, the company added 30 hotels, taking its portfolio to 32 properties across 22 cities and two countries, including Bhutan. Its upcoming hotels are in Udaipur, Mumbai and Corbett Tige...