Backpacker hostel chain The Hosteller has successfully raised Rs 48 crore (approximately $5.7 million) in its Series A funding round. The round was led by existing investor V3 Ventures, which contributed Rs 32 crore in equity, while Blacksoil provided Rs 16 crore in venture debt. This new round has pushed The Hosteller’s valuation to Rs 200 crore (around $25 million).
The fresh investment follows a significant gap since the company closed its $1 million seed round in 2021. The funding will be directed toward scaling up the company’s operations and expanding its footprint across India. The Hosteller plans to strengthen its presence in popular travel destinations such as Rishikesh, Manali, Bengaluru, and Delhi, while also venturing into new, emerging travel hubs.
Founded in 2014, The Hosteller offers affordable yet experiential accommodation to the growing community of backpackers. With over 50 hostels across India, the company has built a reputation for providing quality lodging at budget-friendly prices, catering to a young, adventurous audience.
The company is also on track to add 75 new properties this year, as part of its aggressive expansion strategy. For the fiscal year ending March 2024, The Hosteller reported revenues of Rs 55 crore and a net profit of Rs 4 crore.
In a competitive space that includes players like goSTOPS, Wudstay, and Backpackers Panda, The Hosteller is carving out a significant niche with its focus on community-driven, affordable travel experiences.
