The Hosteller raises $1M million in pre-Series A funding round; eyes local, international expansion

Backpacker hostel chain The Hosteller plans to use the freshly infused capital to grow the number of hostels in India from 12 to 50 and also expand internationally.
12 CLAPS
0

One of India’s fastest growing backpacker hostel chains, The Hosteller, has raised $1 million in a funding round led by FAO ventures and CA Holding LLP. The round also saw the participation of other marquee investors such as SUNiCON Ventures, Shubhkam Ventures, Jito Angel network, and FAAD Network

 

With the freshly infused capital, The Hosteller plans to grow the number of hostels from 12 hostels to 50. The brand further seeks to raise $ 10 million as a part of their Series A round to expand its footprint further in India and Southeast Asia.

 

Commenting on the latest fundraise, Pranav Dangi, Founder of Hosteller, said, “People are looking for more experience-driven stays that are pocket-friendly, safe, and comfortable rather than just luxury when it comes to their vacations. The Hosteller was founded with the aim of creating lasting memories for everyone looking for more than just a vacation in India. The fresh capital infusion will help us reach new heights and we are happy to have marquee investors backing us in our journey.”

“We were glad to lead the round for The Hosteller, which has demonstrated a very good understanding of the space and created a recognisable brand with excellent unit economics, giving us the confidence that they can become a  dominant player in the Indian hospitality landscape and even move outside the country in due time,” said Farooq A Oomerbhoy, Founder, FAO ventures.

"Instead of being a pure-play aggregator like some of the larger players, The Hosteller has created a model backed by consistent quality and value-added services delivered at a price accessible to the larger population of India,” he added.

 

Founded in 2014 by Pranav Dangi, The Hosteller is a one-of-a-kind chain of backpacker hostels and an ideal pit-stop for both international and domestic travellers that offers experiential yet affordable and quality lodging with several activities that all ‘young-at-heart’ travellers from across the globe can enjoy while staying in a clean, safe, and sophisticated environment.

 

 

Edited by Teja Lele Desai

Latest

Updates from around the world