The Hosteller, a well-known backpacker hostel chain, has successfully raised ₹48 crore (approximately $5.7 million) in its Series A funding round. Existing investor V3 Ventures led the round, contributing ₹32 crore in equity, while Blacksoil supported the initiative with ₹16 crore in venture debt.
This fresh round of funding boosts The Hosteller’s valuation to an estimated ₹200 crore (around $25 million). The company had previously raised a $1 million seed round back in 2021, making this its first major funding update in three years.
The raised capital will be utilized to expand the brand’s reach across India, focusing on high-demand cities such as Rishikesh, Manali, Bengaluru, and Delhi, alongside exploring new travel hubs.
Founded in 2014, The Hosteller has grown to include more than 50 properties nationwide, providing affordable, quality lodging designed for the modern backpacker. For the fiscal year ending in March 2024, the company reported revenue exceeding ₹55 crore and a net profit of ₹4 crore. With plans to add 75 new hostels this year, The Hosteller is positioning itself for significant growth in the coming months.
The company faces competition from other hostel chains like goSTOPS, Wudstay, and Backpackers Panda.
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