India’s leading backpacker hostel chain the Hosteller raised USD 4 million in its Series A funding round led by V3 Ventures, along with 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 strategically used to expand The Hosteller’s footprint, with plans to expand to over 150 locations across India within the next 24 to 30 months, the startup said, as it aims to strengthen its hold in existing metro cities while also venturing into new travel destinations, with a particular focus on providing high-quality, immersive travel experiences for backpackers.
“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” V3 Ventures, Co- Founder, Arjun Vaidya, stated.
The new investment elevates The Hosteller’s valuation to around USD 25 million.
“Our focus remains on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth” Pranav Dangi, Founder and CEO of The Hosteller, said.
Since its inception in 2014, operating in 60 locations nationwide, including major metros and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka, and more, The Hosteller claimed to be the only chain with a presence in over 12 states in India. Its self-operated model ensures consistent quality and a standardised backpacker experience, making it a preferred choice for budget-conscious travellers.
While the sector has received some funding, many hostel businesses in India are finding long-term survival hard and are moving towards more premium offerings and trying their hand at homestays, the Mint reported.
