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Funding · Commerce & Consumer Brands

The Hosteller raises ₹150 crore in Series B funding to expand and launch a travel super app

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Date
Company
The Hosteller
What it does
affordable hostel chain
Kind
Funding
Amount
₹150 Cr
Stage
Series B
Based in
Mumbai
Founded
2014
Sector
Commerce & Consumer Brands

What they do

The Hosteller is an affordable hostel chain operating over 75 properties across 13 states in India

What happened

It raised ₹150 crore in Series B funding led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth…

Why it matters

The company plans to expand to 25,000 beds nationwide within 36 months and launch a travel super app integrating accommodation, F&B, mobility, and curated…

The details

  • The Hosteller raised ₹150 crore in Series B funding led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and family offices.
  • The company plans to use the funds to expand its hostel network to 25,000 beds nationwide within 36 months.
  • It also aims to launch a travel super app that integrates accommodation, food and beverage, mobility, and curated experiences into a single platform.
  • The Hosteller currently operates over 75 properties across 13 states and has hosted over 20 lakh unique travellers.
  • Over the past 12 months, the company added over 30 properties and grew its traveller capacity by nearly 70%.
  • Founder and CEO Pranav Dangi started The Hosteller in 2014 to provide affordable and reliable accommodation for Indian travellers.
  • The Hosteller's unit economics, including occupancy rates, repeat rates, and revenue per bed, outperform those of budget hotel chains at comparable price points.

The bigger picture

  • The Hosteller's business model is gaining traction as more Indian travellers seek affordable and experiential travel options.
  • The company's expansion and app development reflect a growing trend in the travel and hospitality sector, where integrated platforms are becoming more popular.
  • The Hosteller's performance metrics, such as occupancy and repeat rates, are strong indicators of its sustainable growth potential.

About the business

  • The Hosteller is a hostel chain that provides affordable and accessible accommodation for backpackers and budget-conscious travellers.
  • It operates over 75 properties across 13 states in India, offering dorm rooms, private rooms, and villas for group stays.
  • The company also offers workation options through its Colive platform, allowing users to book rooms for extended stays.
  • The Hosteller's target market includes young professionals, students, and budget-conscious travellers seeking affordable and reliable accommodation.
  • The company has grown significantly over the past year, adding over 30 properties and increasing its traveller capacity by nearly 70%.

What happens next

  • The Hosteller plans to expand its hostel network to 25,000 beds nationwide within 36 months.
  • It is preparing to launch a travel super app that integrates accommodation, F&B, mobility, and curated experiences into a single platform.
  • The company aims to build a public, enduring hospitality brand out of India.

The deal

Type
funding

Investors

  • PROMAFT Partners (lead) — A venture capital firm with a debut $100 million Series A/B fund.
  • V3 Ventures (co-lead) — A venture capital firm that has been investing in The Hosteller since its Series A round in 2024.
  • ITI Growth Opportunities Fund (participant) — A fund that invests in growth-stage companies with strong unit economics.
  • Merisis Wealth Trust (participant) — A private equity and venture capital firm focused on early-stage investments.
  • family offices (participant) — Private investment vehicles typically managed by high-net-worth individuals.

Founders

  • Pranav Dangi, Founder and CEO

About The Hosteller

Product
Network of backpacker hostels providing dorms, private rooms, F&B and community experiences for travelers
Customers
Young travelers, digital nomads, and explorers seeking affordable and experiential accommodation
How it makes money
Standardized hostel chain with community-focused experiences and planned travel super app expansion
What sets it apart
Plans to launch travel super app combining accommodation, F&B, mobility and curated experiences

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