Hostel chain The Hosteller has raised ₹150 Cr (around $16 Mn) in its Series B funding round co-led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and undisclosed family offices.
The Mumbai-based hostel chain plans to deploy the capital to expand across key travel destinations, strengthen operational capabilities, and brand building.
The Hosteller is targeting setting up 25,000 beds across the country within the next 36 months. Additionally, it is also preparing to launch a travel super app comprising accommodation, F&B, mobility, and curated experiences into a single platform.
“This round is about sustained acceleration to 25,000 beds, a full stack travel platform, and building the kind of company that can define this category for decades,” The Hosteller founder and CEO Pranav Dangi said.
Founded by Dangi in 2014, The Hosteller offers affordable and accessible backpacker hostels across India. It currently operates more than 75 properties in 13 states. It claims to have added more than 30 properties and grown traveller capacity by nearly 70% in the last 12 months.
Apart from offering hostels, it also offers options like properties for workations. The Hosteller Colive allows users to book dorm rooms, private rooms or villas to stay in groups.
Prior to this round, The Hosteller raised ₹48 Cr in a fresh funding round led by V3 Ventures in 2024. Overall, it has raised about $26.5 Mn to date from the likes of BlackSoil, Synergy Capital Partners, Faad Network, JITO Angel Network, among others.
This comes at a time when staycations and workations are becoming popular among the young working professionals. As a result, hostels and dorm rooms have gained a lot of traction over the past decade.
Investors are backing hostel companies and startups as they look to capitalise on the growing opportunity. For instance, goSTOPS secured ₹35 C in its Series A funding round last year.
Similarly, coliving startup Tribe Stays recently raised $2.8 Mn in its seed round co-led by Artha Venture Fund and Riverwalk Holdings to increase its total bed count to 25,000 across cities such as Hyderabad, Bengaluru, Mumbai, Gurugram, and Pune.
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