Existing investors including LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC, Thrive Ventures, among others, also participated in the round.
The funds will be used for expansion and the company plans to increase its presence to over 150 locations across India over the next 24 to 30 months.
Established in 2014, The Hosteller operates across 60 locations across the country including metropolitan cities and scenic locations in Himachal Pradesh, Uttarakhand, Karnataka and beyond.
“We remain focused on delivering exceptional travel experiences to our backpacker community while fostering sustainable growth. With the launch of Glu, our end-to-end tech concierge service, and other initiatives, we are setting new benchmarks in the hospitality industry,” said Founder and CEO Pranav Dangi.
According to Saksham Khemka’s CFO, the company has seen a surge in demand, with a 4-fold growth in the number of branches 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 every month,” he said. The Hosteller reported that revenue of Rs 55 crore for the fiscal year ending March 2024, along with positive net margins, the company said.
Commenting on the investment, Arjun Vaidya, Partner at V3 Ventures, said, “The Hosteller has firmly established its position as a leader in the consumer and travel space through its excellent execution.”
“The Hosteller team has demonstrated excellence in on-the-ground execution, capital utilization and customer engagement, setting a standard rarely seen in young and established companies,” said Apurva Patel, Synergy Capital Partners.
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