Backpacker Hostel Chain The Hosteller Raises Rs 48 Crore in Round Led by V3 Ventures
The Hosteller, a leading backpacker hostel chain in India, has announced raising Rs 48 crore (approximately $6.2 million) in a Series B funding round led by V3 Ventures, with participation from existing investors Fireside Ventures and Blume Ventures. This fresh injection of capital will fuel the company’s expansion plans, enabling it to establish a greater footprint in both domestic and international markets, particularly in Southeast Asia.
Founded in 2014 by young entrepreneurs, The Hosteller has carved a niche for itself by providing affordable and unique accommodation solutions for budget-conscious travellers, particularly millennials. Their hostels, strategically located in popular tourist destinations across India, offer a blend of comfort, community, and affordability, appealing to a growing segment of travellers who prioritize experiences over luxury.
This latest round of funding marks a significant milestone for The Hosteller, propelling it towards achieving its ambitious goals. The company aims to strengthen its existing network of hostels, adding more properties to its portfolio, both in India and abroad. Furthermore, they plan to invest in technology and innovation, further enhancing their booking platform and customer experience.
“We are excited to partner with V3 Ventures in this journey,” said the founder of The Hosteller. “Their expertise in the travel and hospitality sector, coupled with their strong network, will be instrumental in accelerating our growth.”
V3 Ventures, a prominent investment firm focusing on technology-driven businesses in the consumer space, expressed its belief in The Hosteller’s potential to revolutionize the hospitality landscape. “We believe The Hosteller is well-positioned to capitalize on the burgeoning demand for affordable, experience-driven travel,” commented a representative of V3 Ventures.
This investment comes at a time when the backpacker travel market is witnessing significant growth. India’s growing middle class, along with a rise in young professionals seeking adventurous experiences, is fuelling this surge. The Hosteller, with its strategic focus on the budget-conscious traveller, appears to be perfectly positioned to cater to this demand.
With this substantial capital infusion, The Hosteller is poised to take a substantial leap forward in its mission to become the preferred choice for backpackers across the globe. Its expansion plans, combined with its commitment to providing memorable experiences for travellers, hint at a bright future for the company in the burgeoning global backpacker market.
Key Highlights of the Investment:
- Rs 48 crore Series B funding round led by V3 Ventures
- Participation from existing investors Fireside Ventures and Blume Ventures
- Focus on expanding hostel network both in India and Southeast Asia
- Investment in technology and platform enhancements
- Strategic positioning to capitalize on the growing backpacker travel market
About The Hosteller:
The Hosteller is a leading backpacker hostel chain in India, offering a network of affordable, comfortable, and unique hostels across popular tourist destinations. Founded in 2014, the company has rapidly grown its presence, catering to a growing segment of budget-conscious travellers, particularly millennials.
About V3 Ventures:
V3 Ventures is a leading investment firm focusing on technology-driven businesses in the consumer space. The firm invests in early-stage companies with disruptive technologies and a proven track record of success. V3 Ventures’ portfolio includes successful startups across a range of sectors, including travel, hospitality, e-commerce, and technology.
