The Hosteller, a popular backpacker hostel chain, has secured INR 48 crore in funding. The investment is a combination of equity and debt, with INR 16 crore coming from Blacksoil as debt and the remainder from V3 Ventures.
Notably, the funding round also included investments from Synergy Capital Partners, Unit-e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC, and angel investors such as Harsh Shah from Naman Group Family Office and Vedang Patel, founder of The Souled Store.
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The Hosteller to expand up to 10,000 beds in 15-18 months
While talking to ET, founder Pranav Dangi said, “We’ve just raised a round of funds which will be utilised to go from 2,500 beds today to 10,000 beds in the next 15 to 18 months.” Meanwhile, the investments will be used for expansion of The Hosteller across India.
Further, he stated that 90% of the funding will be used for expanding properties, while the remaining 10% will be for acquiring customers.
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Established in 2014, The Hosteller runs 60 locations across India, including major cities and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka, and more. It aims to expand into new areas like Odisha, West Bengal, and the northeast, while strengthening its presence in current tier-1 cities such as Delhi, Mumbai, Bangalore, Goa, and Jaipur.