The Hosteller Raises ₹150 Crore in India’s Largest Hostel Funding Round

The Hosteller, a backpacker hostel chain, has raised ₹150 crore in a Series B funding round led by PROMAFT Partners and V3 Ventures, the company today announced in a statement

The round also saw participation from ITI Growth Opportunities Fund, Merisis Wealth Trust and a group of family offices. According to the company, this is the largest institutional funding round raised by a hostel chain in India.

Founded in 2014, The Hosteller operates more than 75 properties across 13 states and has hosted over two million travellers to date. Over the past year, it added more than 30 properties and expanded capacity by around 70%.

The company said the funds will be used to expand its presence across travel destinations, improve operations and invest in brand development.

The Hosteller is targeting 25,000 beds over the next three years. It is also planning to develop a platform integrating accommodation, food and beverage, transport and travel-related services.

“We started The Hosteller because Indian travellers deserved better than a choice between overpriced hotels and unreliable budget stays. 11 years and 20 lakh travellers later, the model has proven itself. This round is about sustained acceleration to 25,000 beds, a full-stack travel platform, and building the kind of company that can define this category for decades. We are on a path to building a truly public, enduring hospitality brand out of India,” said Pranav Dangi, founder and CEO, The Hosteller.

Merisis Advisors acted as the exclusive adviser on the transaction.