Travelers gather around a map, planning their next adventure in a vibrant hostel common room.
Indian hostel chain The Hosteller has raised ₹150 Cr (approximately $16 million) in a Series B funding round. The round was co-led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and undisclosed family offices.
Based in Mumbai, The Hosteller intends to use the capital to expand its presence across key travel destinations in India. The company also plans to strengthen its operational capabilities and invest in brand building initiatives.
The Hosteller is targeting a total of 25,000 beds across India within the next three years. Additionally, the company is developing a travel “super app” that will integrate accommodation, F&B, mobility, and curated experiences into a single platform.
Founded in 2014 by Pranav Dangi, The Hosteller operates over 75 properties in 13 states, offering affordable backpacker hostels. The company reports it has added more than 30 properties and increased traveler capacity by nearly 70% in the last 12 months.
In addition to hostels, The Hosteller also offers properties for workations, including dorm rooms, private rooms, and villas for group stays. Prior to this Series B round, The Hosteller raised ₹48 Cr in a funding round led by V3 Ventures in 2024. To date, the company has raised approximately $26.5 million from investors including BlackSoil, Synergy Capital Partners, Faad Network, and JITO Angel Network.
The Hosteller’s funding arrives amidst increasing demand for staycations and workations among young professionals, driving growth in the hostel and dorm room sector. Other companies in the space have also attracted investor interest. goSTOPS secured ₹35 Cr in a Series A funding round last year, while coliving startup Tribe Stays recently raised $2.8 million in a seed round to expand its portfolio to 25,000 beds across cities like Hyderabad, Bengaluru, Mumbai, Gurugram, and Pune.
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