The Hosteller, a prominent Indian backpacker hostel chain, has raised Rs 48 crore in its Series A funding round, led by V3 Ventures, with contributions from Synergy Capital Partners, Unit e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC, and AL Trust (Thrive Ventures), as per media reports. Additional support came from investors like Harsh Shah of Naman Group Family Office, Akash Hiren Zaveri, founder of Plix, and Vedang Patel, founder of The Souled Store.
In this funding mix, V3 Ventures led with Rs 32 crore in equity, while Blacksoil contributed Rs 16 crore in venture debt to complete the round, according to media reports. The Hosteller plans to use the fresh capital to expand its presence throughout India, bolstering its footprint in popular cities like Rishikesh, Manali, Bengaluru, and Delhi, and exploring new travel destinations.
Founder and CEO Pranav Dangi highlighted that this funding will help propel The Hosteller’s mission of providing standardized, tech-enabled lodging options tailored for GenZ and millennial travelers. The company is on track to increase its bed count from the current 2,500 to 10,000 by March 2026. "The backpacker hostel experience has surged in popularity post-Covid, with a growing demand for affordable, community-oriented accommodations," said Dangi.
Established in 2014, The Hosteller now operates over 50 hostels nationwide, competing with brands like goSTOPS, Wudstay, and Backpackers Panda.
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