Backpacker hostel brand goSTOPS has raised $1 million in its Pre-Series A round led by Indian Angel Network (IAN) and Yuj Ventures. The round also saw participation from The Chennai Angels, Chandigarh Angels, Lead Angels, Mumbai Angels Network, LetsVenture and goSTOPS’ existing backer 1Crowd.
According to goSTOPS, the freshly infused funds will be used to grow the company’s supply over the next 12 months and invest in marketing and technology.
Co-founded by Pallavi Agarwal and Pankaj Parwanda in 2014, goSTOPS provides youth-focused stay accessible within a budget of Rs 500 per night. The startup claims to have hosted over 500K guests in its properties since its inception.
The Delhi-based company operates across 20 tourist destinations in India such as Agra, Alleppey, Amritsar, Bir, Dalhousie, New Delhi, Fort Kochi, Goa, Jaipur, Leh, Manali, Mcleodganj, Mumbai, Munnar, Mussoorie among others.
The new funding in the company is a good sign for the hospitality ecosystem in India. Last week, Treebo Hotels closed its $16 million Series D round led by Accor.
goSTOPS directly competes with Hosteller. According to Entrackr‘s sources, the latter is also raising a new round.