The Hosteller, a backpacker hostel chain, has successfully raised $4 million in its Series A funding round led by V3 Ventures.
The round also saw participation from existing investors including LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC (backed by Mrunal Jhaveri), Thrive Ventures, Chirag Jain and several real estate-based family offices.
The new investment elevates The Hosteller’s valuation to approximately ₹200 crore (around $25 million).
The funds will be utilised to expand The Hosteller’s footprint, with plans to expand to over 150 locations across India within the next 24 to 30 months. The startup aims to strengthen its hold in existing metro cities while also venturing into new travel destinations, with a particular focus on providing high-quality, immersive travel experiences for backpackers.
V3 Ventures, Co-founder, Arjun Vaidya, said, “The Hosteller has firmly established its position as a leader in the consumer and travel space through its outstanding execution. We are proud to support the company as it enters its next phase of growth, with plans to expand to more than 150 locations within the next two years.”
Pranav Dangi, founder and CEO of The Hosteller, said, “Our focus remains on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth. With the launch of Glu, our complete tech concierge, and other initiatives, we are setting new benchmarks in the hospitality sector.”
Saksham Khemka, CFO of The Hosteller said, “This capital infusion will accelerate our expansion plans while ensuring we maintain the high service standards our guests expect. We’ve experienced significant demand, with 4x growth in the number of locations over the past three years. We plan to continue this momentum by adding four to five new hostels to our portfolio each month.”
Since its inception in 2014, The Hosteller has become synonymous with affordable, quality lodging and immersive travel experiences. Operating in 60 locations nationwide, including major metros and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka, and more, it is the only chain with a presence in over 12 states in India. Its self-operated model ensures consistent quality and a standardised backpacker experience, making it a preferred choice for budget-conscious travellers.
