The Hosteller bags $5.7 Mn in Series A round

Backpacker hostel chain The Hosteller has raised Rs 48 crore (around $5.7 million) in its Series A round led by existing investor V3 Ventures in a mix of debt and equity infusion.

In this funding mix, V3 Ventures led with Rs 32 crore in equity, while Blacksoil contributed Rs 16 crore in venture debt to complete the round. The new investment elevates The Hosteller’s valuation to approximately Rs 200 crore (around $25 million).

Entrackr had exclusively reported the Series A round on September 4, 2024. The funding has come after a gap of three years for the Mumbai-based company as it closed its $1 million seed round in 2021. 

The proceeds will be used to expand its presence throughout India, expanding its footprint in popular cities such as Rishikesh, Manali, Bengaluru, and Delhi, and exploring new travel destinations. 

Founded in 2014, The Hosteller is a chain of backpacker hostels that offers experiential yet affordable and quality lodging. The company currently has more than 50 hostels across India. 

The company has reportedly crossed the revenue of Rs 55 crore during the last fiscal year ended March 2024 with a net profit of Rs 4 crore in the same period. It also plans to add 75 new properties this year. 

It competes with goSTOPS, Wudstay, and Backpackers Panda, among others