Hostel Chain The Hosteller Secures INR 48 Cr Funding Led by V3 Ventures, Targets Major Expansion With this fresh series A funding, the Mumbai-based chain plans to deepen its presence across popular Indian travel destinations like Rishikesh, Manali, Bengaluru, and Delhi, while also exploring new tourist hubs.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The Hosteller, a leading Indian backpacker hostel chain, has secured INR 48 crore (USD 5.7 million) in its Series A funding round. This round was led by V3 Ventures, with significant contributions from Synergy Capital Partners, Unit e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC, and AL Trust (Thrive Ventures).
Notable angel investors included Harsh Shah of Naman Group Family Office, Akash Hiren Zaveri, founder of Plix, and Vedang Patel, founder of The Souled Store.
The funding mix includes INR 32 crore in equity from V3 Ventures and INR 16 crore in venture debt from Blacksoil.
This is The Hosteller's first major fundraising since its USD 1 million seed round in 2021.
With this fresh capital, the Mumbai-based chain plans to deepen its presence across popular Indian travel destinations like Rishikesh, Manali, Bengaluru, and Delhi, while also exploring new tourist hubs.
Pranav Dangi, Founder and CEO of The Hosteller, said, "This investment will strengthen our mission to offer standardised, tech-enabled accommodations pan-India for the backpacking community. We aim to scale from our current 2,500 beds to 10,000 beds by March 2026. The fresh capital will help us accelerate our expansion and attract customers from untapped regions."
Founded in 2014, The Hosteller has grown to over 50 properties across India, offering affordable and experiential stays tailored to Gen Z and millennial travelers.
The company plans to add 75 new properties this year as it competes with other hostel brands like goSTOPS, Wudstay, and Backpackers Panda, solidifying its place in India's thriving travel and hospitality market.
