The Hosteller, India’s largest self-operated backpacker hostel chain, has secured INR 48 crore (around $5.7 Mn) in a funding round led by V3 Ventures in a mix of equity and debt. A debt of Rs 16 crore from the venture debt platform Blacksoil.
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Other investors include Synergy Capital Partners, Unit-e Consulting LLP, Real Time Angel Fund (Climber Capital), and Ice VC, along with angel investors like Harsh Shah from Naman Group Family Office and The Souled Store founder Vedang Patel.
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“We’ve just raised a round of funds which will be utilized to go from 2,500 beds today to 10,000 beds in the next 15 to 18 months,” founder Pranav Dangi said.
“Our northern presence is much larger than our southern presence. So, the usage of funds would help us expand more deeply into the southern part of the country. Also, we will be going to the eastern part of the country,” Dangi said.
“Almost 70% of our future expansion is going to be in higher demand cities, 20% in offbeat destinations, and the remaining 10% in the cities where we are already present,” Dangi added.
The Hosteller provides clean and safe housing facilities, secured lockers, well-stocked common kitchens, air conditioners, equipped libraries, exclusive female dorms, traveler’s cafes, chiller common rooms, and wide open spaces where travelers can bond over cups of lip-smacking coffee in stylish yellow-black themed hostels.
Commenting on the investment, Arjun Vaidya, cofounder of V3 Ventures, said, “We noticed a change in the way GenZ travels — from saving up for one holiday a year to traveling every long weekend. And, The Hosteller fulfills this exact need.”
About The Hosteller
Founded in 2014 by Pranav Dangi, The Hosteller is India’s largest self-operated backpacker hostel chain across 55+ locations. We are the perfect pit stop for travelers around the globe and locals alike, looking to relax, rejuvenate, and experience India’s rich heritage while not worrying about a clean, safe place to stay.
It is one of the fastest-growing hostel chains in India, uniquely designed, and packed with activities and experiences to get as much out of your travels and quality budget accommodation.
The Hosteller has hosted 3,50,000+ travelers with more than 5,50,000 nights. Travelers, writers, photographers, young poets, comedians, solo travelers, female trekkers.
