The Hosteller Secures INR 48 Crore Funding

The Hosteller, a leading backpacker hostel chain in India, has successfully completed its Series A funding round, securing ₹48 crore (USD 5.7 million) led by V3 Ventures, with participation from several notable investors. The funding includes ₹32 crore in equity and ₹16 crore in venture debt from Blacksoil, marking a significant milestone since its last fundraising in 2021. With the new capital, The Hosteller plans to expand its presence in popular destinations like Rishikesh, Manali, Bengaluru, and Delhi, aiming to grow its bed capacity from 2,500 to 10,000 by March 2026. Founder Pranav Dangi emphasized the company's mission to provide standardized, tech-enabled accommodations catering to Gen Z and millennial travelers. The funding reflects a shift in travel trends among younger generations who prefer budget-friendly, experiential stays, positioning The Hosteller competitively against other hostel brands. Established in 2014, the company currently operates over 50 properties across India.