Hosteller raises Rs 48 Cr in Series A round led by V3
Backpacker hostel brand Hosteller will use the investment to strengthen its presence in cities like Rishikesh and Manali, while also expanding into new destinations across India.
Backpacker hostel brand The Hosteller has raised Rs 48 crore in a Series A funding round. V3 Ventures led the equity round, contributing Rs 32 crore, with Blacksoil providing an additional Rs 16 crore in venture debt.
Other key investors include Synergy Capital Partners, Unit e-Consulting, Real Time Angel Fund, and several high-profile investors like Harsh Shah from the Naman Group Family Office.
The investment will allow the company to strengthen its presence in cities like Rishikesh and Manali, while also expanding into new destinations across India.
"We aim to have 10,000 beds by March 2026 from the existing 2,500 beds. Backpacker hostels have become the go-to choice for GenZ and millennial travellers in the post-covid era. The fresh capital will not only accelerate our expansion but also help us acquire customers from the newer territories," Pranav Dangi, Founder and CEO of The Hosteller, said in a statement.
"We noticed a change in the way GenZ travels--from saving up for 1 holiday a year to travelling every long weekend. And, The Hosteller fulfills this exact need. With a standardised, 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," Arjun Vaidya, Co-founder of V3 Ventures, said.
Hostel companies are significantly benefitting from the rise of digital nomadism, a trend that has reshaped the hospitality landscape. Digital nomadism refers to a lifestyle where individuals leverage technology to work remotely while traveling to various locations. This modern way of living allows people to combine work and travel, enabling them to explore new cultures and environments without being tied to a specific office or geographical location.
The Hosteller was founded by Pranav Dangi in 2014. It began with the vision of creating accessible and affordable backpacker hostels across India, aiming to cater to the needs of young travelers. Since its inception, The Hosteller has rapidly grown to become one of India's largest self-operated backpacker hostel chain, with a presence in over 55 destinations across the country.
Edited by Megha Reddy