The Hosteller, a homegrown chain of backpacker hostels, has successfully raised Rs 48 crore in its Series A funding round. The investment was led by V3 Ventures, with participation from Synergy Capital Partners, Unit e Consulting LLP, Climber Capital, Ice VC, and Thrive Ventures. Individual investors like Harsh Shah, Akash Hiren Zaveri, and Vedang Patel also joined the round, along with venture debt funding of Rs 16 crore from Black Soil.
Funds to Boost Nationwide Growth
Founded in 2014, The Hosteller plans to use this new capital to expand its presence across India. The company aims to enhance its operations in cities like Rishikesh, Manali, Bangalore, and Delhi while exploring new travel destinations. By focusing on nationwide expansion, The Hosteller is set to strengthen its position in the growing travel and backpacker market.
Pranav Dangi, the Founder and CEO of The Hosteller, shared, “This investment supports our mission to deliver standardized and tech-enabled travel experiences across India, catering to the backpacking community.”
Bed Capacity and Customer Base
The Hosteller currently offers 2,500 beds across its hostels and aims to expand this number to 10,000 beds by March 2026. The company is focusing on reaching new customers in emerging travel destinations, especially as Gen Z and millennials prefer backpacker hostels for their affordability and community-driven experiences.
“The post-COVID era has seen a surge in Gen Z travelers, who now prefer traveling regularly. This capital will help us speed up our expansion and reach new areas,” added Dangi.
Exciting Growth Ahead
Arjun Vaidya, Co-Founder of V3 Ventures, also spoke about the company’s potential: “We’ve seen a shift in the way Gen Z travels—from one big holiday a year to traveling frequently on long weekends. The Hosteller meets this need with a standardized, budget-friendly, and tech-first approach, which makes it an exciting investment opportunity.”
With its innovative, tech-driven approach to affordable travel, The Hosteller is well-positioned to serve the evolving travel needs of young Indian backpackers. The investment will fuel the company’s efforts to provide immersive travel experiences in cities across the country.
