Backpacker hostel chain The Hosteller has raised Rs 150 crore in a Series B funding round co-led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust and a group of family offices. The company stated that this marks the largest institutional funding round raised by a hostel chain in India.
The Mumbai-based company had previously secured $5.7 million in a Series A round led by V3 Ventures in November 2024, following an earlier $1 million pre-Series A round led by FAO Ventures in November 2021. With this latest infusion, The Hosteller continues to strengthen its position in the organised budget travel segment.
The fresh capital will be utilised to accelerate expansion across key travel destinations in India, alongside improving operational efficiencies and strengthening brand presence. The company is also focusing on scaling its infrastructure to meet growing demand from young travellers and digital nomads.
The company currently operates over 75 properties across 13 states and has hosted more than 20 lakh unique travellers. Over the past year, it has added more than 30 properties while increasing its traveller capacity by nearly 70 percent, reflecting rapid growth in its network.
Pranav Dangi, founder and CEO, The Hosteller, said, “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.”
