The Hosteller Secures Rs 150 Crore in Series B Funding

Backpacker hostel chain The Hosteller has successfully raised Rs 150 crore (approximately $16 million) in a Series B funding round, co-led by PROMAFT Partners and V3 Ventures. Additional contributions came from ITI Growth Opportunities Fund, Merisis Wealth Trust, and several notable family offices.

Previous Funding Rounds

This Mumbai-based company had earlier garnered $5.7 million in a Series A funding round, spearheaded by existing investor V3 Ventures, comprising both debt and equity investments in November 2024. Furthermore, the organisation raised $1 million during a pre-Series A round led by FAO Ventures back in November 2021.

Utilization of New Funds

The Hosteller has announced plans to utilise the newly acquired capital to expedite its expansion efforts across essential travel destinations, whilst enhancing its operational efficiencies and brand visibility, as stated in a recent press release.

About The Hosteller

Founded in 2014 by Pranav Dangi, The Hosteller caters to budget-conscious travellers, offering a unique blend of affordable, standardised, and experiential accommodation for young adventurers, digital nomads, and explorers. The company operates a network of over 55–65 locations, which include dormitories, private rooms, and cafes, all aimed at fostering community-driven travel experiences.

Growth and Expansion Goals

The Hosteller claims to manage more than 75 properties across 13 states and has welcomed over 2 million unique travellers. In the past year alone, the company has launched more than 30 properties and increased its traveller capacity by nearly 70%. Looking ahead, The Hosteller is targeting a total of 25,000 beds nationwide within the next three years. Additionally, the company is gearing up to introduce a travel super app that will combine accommodation, food and beverage, transportation, and curated experiences into a single user-friendly platform.

Competitive Landscape

The Hosteller is in competition with various players in the market, including goSTOPS, Wudstay, and Backpackers Panda, among others.