The Hosteller, a backpacker hostel brand has raised ₹48 crore (approximately $5.7 million) in its Series A funding round led by V3 Ventures. The round also saw participation from prominent investors including Synergy Capital Partners, Unit e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC led by Mrunal Jhaveri, and AL Trust (Thrive Ventures).
Notable individual investors joining the round include Harsh Shah from the Naman Group Family Office, Akash Hiren Zaveri, founder of Plix and Vedang Patel, founder of The Souled Store.
The company has raised ₹16 crore from Blacksoil as venture debt. The Hosteller has raised $4 million in its first tranche of Series A funding in September, as MarcaMoney reported.
The fresh capital will be used to expand its footprint across India, with plans to strengthen its presence in existing cities such as Rishikesh, Manali, Bangalore, Delhi, etc. while venturing into new travel destinations.
Pranav Dangi, Founder and CEO of The Hosteller, said, “This strategic investment will further strengthen our mission of delivering standardized offerings pan India enabled by a tech-first approach to the backpacking community. We aim to have 10000 beds by March 2026 from the existing 2500 beds. Backpacker hostels have become the go-to choice for GenZ and millennial travelers in the post-covid era. The fresh capital will not only accelerate our expansion but also help us acquire customers from the newer territories.”
Arjun Vaidya, Co-Founder of V3 Ventures, said, “We noticed a change in the way GenZ travels – from saving up for 1 holiday a year to traveling every long weekend. And, The Hosteller fulfills this exact need. With a standardized, tech-first, budget-friendly option – the brand offers something truly unique to its customers. This makes us even more excited about the growth ahead. The Hosteller has demonstrated outstanding execution capabilities in the consumer and travel space.”
Founded in 2014, The Hosteller is a chain of backpacker hostels that offer experiential yet affordable and quality lodging. The Hosteller has a presence in over 55 destinations across the country. It competes with goSTOPS, Wudstay, and Backpackers Panda, among others.
