The Hosteller, a leading backpacker hostel chain, has raised $4 million (approximately Rs 32 crore) at a valuation of around $25 million in a funding round led by V3 Ventures. The round also saw participation from existing investors such as LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC, and Thrive Ventures. The funds will be used to fuel The Hosteller’s expansion plans, with the company aiming to increase its footprint to over 150 locations across India in the next 24 to 30 months.
Founded in 2014, The Hosteller currently operates in 60 locations across India, including major metropolitan areas and popular tourist destinations in Himachal Pradesh, Uttarakhand, Karnataka, and other scenic regions. Pranav Dangi, founder and CEO, emphasized the company’s commitment to enhancing travel experiences for the backpacker community while focusing on sustainable growth. The launch of Glu, a comprehensive tech concierge service, is part of their initiative to set new standards in the hospitality industry.
CFO Saksham Khemka highlighted the company’s rapid expansion, noting a fourfold increase in locations over the past three years. The Hosteller plans to maintain this momentum by adding four to five new hostels each month. For the fiscal year ending March 2024, the company reported revenue of Rs 55 crore along with positive net margins.
Arjun Vaidya, partner at V3 Ventures, praised The Hosteller for its strong position in the consumer and travel sectors, attributing its success to exceptional execution. Apurva Patel of Synergy Capital Partners also commended the team’s excellence in on-ground execution, effective capital utilization, and strong customer engagement, setting a high standard in the industry.