Backpacker hostel startup goSTOPS has secured INR 35 Cr (around $4.2 Mn) as a part of its Series A funding round led by Blume Ventures.
The round also saw participation from 1Crowd, along with existing investors Mumbai Angels, Chennai Angels, Indian Angel Network, Lead Angels and Yuj Ventures.
While Blume infused INR 25 Cr in this round, the remaining INR 10 Cr came from other investors, goSTOPS founder Pankaj Parwanda told Inc42.
The Delhi-based startup plans to use the fresh capital to scale up its current capacity from 2,500 to 10,000 beds across 100 locations in the next two years. Apart from this, the proceeds would be deployed to strengthen its operations, enhance technology and elevate the social and experiential aspects of its existing properties.
Additionally, the company is also finalising debt partnerships for the brand’s expansion.
So far, the startup claims to have raised a total of $ 3 Mn in funding.
It competes against the likes of Zostel, The Hosteler, and Airbnb among others in the hostel travel accommodation segment.
On the financial front, Parwanda claimed that the company will report a net EBITDA positive in FY25. He also gave a guidance that the startup will report a revenue of INR 40 Cr from the given fiscal year.
Founded in 2012 by Parwanda and Pallavi Agarwal, goSTOPS is a travel and coliving hostel chain. It leases, manages and sets up franchisees of its real estate assets, which are then designed, transformed, marketed, sold, and operated as youth hostels in as many as 29 destinations.
The startup gives its offering via its website, app and other online travel agencies. However, 60% of its bookings come from either its app or website.
The development comes at a time when there has been a growing demand for young travellers for hostels over traditional hotels. As per a report, the global hostel market size is estimated to be $4.6 Bn in 2023 which is projected to reach $12.1 Bn by 2033, at a CAGR of 10.20% from 2023 to 2033.
As a result of this market scope, investors too are bullish on the segment. Recently, another hostel startup The Hosteller raised a fresh funding of INR 48 Cr (around $5.7 Mn) led by existing investor V3 Ventures in a mix of debt and equity infusion.
The post Backpacker Hostel Startup goSTOPS Bags $4.2 Mn To Expand Operations appeared first on Inc42 Media.
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