India, October XX, 2024 – The Hosteller, India’s leading backpacker hostel brand, today announced the successful completion of its Series A funding round, securing a total investment of ₹48 Crore. The equity investment was led by V3 Ventures along with participation from prominent investors including Synergy Capital Partners, Unit e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC led by Mrunal Jhaveri, and AL Trust (Thrive Ventures). Notable individual investors joining the round include Harsh Shah from Naman Group Family Office, Akash Hiren Zaveri, founder of Plix and Vedang Patel, founder of The Souled Store. The company also raised ₹16 Crore from Blacksoil as venture debt, marking a major milestone in The Hosteller’s growth journey.
Pranav Dangi, Founder and CEO of The Hosteller, said, “This strategic investment will further strengthen our mission of delivering standardized offerings pan India enabled by a tech-first approach to the backpacking community. We aim to have 10000 beds by March 2026 from the existing 2500 beds. Backpacker hostels have become the go-to choice for GenZ and millennial travelers in the post-covid era. The fresh capital will not only accelerate our expansion but also help us acquire customers from the newer territories.”
Arjun Vaidya, Co-Founder of V3 Ventures, said, “We noticed a change in the way GenZ travels – from saving up for 1 holiday a year to traveling every long weekend. And, The Hosteller fulfills this exact need. With a standardized, 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.”
The fresh capital will be strategically utilized to expand The Hosteller’s footprint across India, with plans to strengthen its presence in existing cities such as Rishikesh, Manali, Bangalore, Delhi, etc. while venturing into new travel destinations. The company aims to maintain its robust growth trajectory while continuing to provide high-quality, immersive travel experiences for backpackers.
