The Hosteller Raises $4 Mn In Series A Round
The funds will be strategically utilised to expand The Hosteller’s footprint
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The Hosteller, India's backpacker hostel chain, said that it raised USD 4 million (Rs 32 crore) in its Series A funding round led by V3 Ventures, along with 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.
V3 Ventures, Co- Founder, Arjun Vaidya, expressed his confidence in The Hosteller's growth trajectory, stating, “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.”
The funds will be strategically utilised to expand The Hosteller’s footprint, with plans to expand to over 150 locations across India within the next 24 to 30 months, said the press release. 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.
The new investment elevates The Hosteller’s valuation to approximately Rs 200 crore (around USD 25 million).
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.”
Since its inception in 2014, operating in 60 locations nationwide, including major metros and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka, and more, it claimed to be 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.
