The round also saw participation from existing investors including LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice. VC, Thrive Ventures, among others.
The funds will be used for expansion, with the company planning to grow its presence to more than 150 locations across India over the next 24 to 30 months.
Founded in 2014, The Hosteller operates in 60 locations across the country, including metros cities and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka and beyond.
“Our focus remains on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth. With the launch of Glu, our complete tech concierge, and other initiatives, we are setting new benchmarks in the hospitality sector,” said founder and chief executive Pranav Dangi.
According to chief financial officer Saksham Khemka, the company has seen a surge in demand, with 4x growth in the number of locations over the past three years.
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“We plan to continue this momentum by adding four to five new hostels to our portfolio each month,” he said.The Hosteller reported a revenue of Rs 55 crore for the fiscal year ending March 2024, along with positive net margins, the firm said.
Commenting on the investment, Arjun Vaidya, partner, V3 Ventures, said, “The Hosteller has firmly established its position as a leader in the consumer and travel space through its outstanding execution.”
“The Hosteller team has demonstrated excellence in on-ground execution, capital utilisation and customer engagement, setting a standard that’s rarely seen in both young and established companies,” said Apurva Patel, Synergy Capital Partners.