Backpacker hostel chain The Hosteller has raised ₹150 crore (around $16 million) in a Series B funding round co-led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund and Merisis Wealth Trust, along with several family offices.
The Mumbai-based startup had earlier raised $5.7 million in Series A (November 2024) led by V3 Ventures, and $1 million in pre-Series A (November 2021) from FAO Ventures.
The fresh capital will be used to accelerate expansion across key travel destinations, while also strengthening operational efficiencies and brand building.
Founded in 2014 by Pranav Dangi, The Hosteller focuses on affordable and experiential stays for young travelers, digital nomads, and explorers.
The company operates a network of 55–65 locations, offering dorms, private rooms, and cafes, built around community-driven travel experiences.
The Hosteller claims it currently:
- Operates 75+ properties across 13 states
- Has hosted 20 lakh+ travellers
- Added 30+ properties in the last 12 months
- Increased traveller capacity by ~70%
Looking ahead, the company aims to scale to 25,000 beds nationwide within 36 months and is planning to launch a travel super app integrating accommodation, F&B, mobility, and curated experiences.
The startup competes with goSTOPS, Wudstay, and Backpackers Panda in India’s growing backpacker hostel segment.
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