The Hosteller, backpacker hostel chain, has raised $4 million (approximately ₹32 crore) in its Series A funding round led by V3 Ventures.
The round also saw participation from existing investors including LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC (backed by Mrunal Jhaveri), Thrive Ventures, Chirag Jain and several real estate-based family offices.
The funds will be utilised to expand its footprint, with plans to expand to over 150 locations across the country in the next 24 to 30 months. The company also aims to strengthen its hold in existing metro cities while also venturing into new travel destinations, with a particular focus on providing immersive travel experiences for backpackers.
Hosteller reported a top-line revenue of ₹55 crore in FY24, with positive net margins.
“Our focus remains on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth,” said Pranav Dangi, Founder and CEO of The Hosteller.
Founded in 2014, by Pranav Dangi, the company provides affordable, quality lodging and immersive travel experiences. With its presence in 60 locations and 12 States, including Himachal Pradesh, Uttarakhand, and Karnataka. The company in a statement said that it has witnessed 4x over the past three years, and it plans to add four to five new hostels to its portfolio each month.
“The Hosteller has firmly established its position as a leader in the consumer and travel space through its outstanding execution. We are proud to support the company as it enters its next phase of growth, ,” said V3 Ventures, Co- Founder, Arjun Vaidya.