TBM Staff - Mumbai
India’s top backpacker hostel brand, The Hosteller, has raised INR 48 crore in Series A funding, led by V3 Ventures, with participation from Synergy Capital Partners, Unit e Consulting LLP, and Real Time Angel Fund (Climber Capital), among others. Noteworthy individual investors include Harsh Shah of Naman Group Family Office, Akash Hiren Zaveri, founder of Plix, and Vedang Patel, founder of The Souled Store. Additionally, The Hosteller secured INR 16 crore as venture debt from Black Soil, marking a significant milestone in its expansion plans.
Founder and CEO Pranav Dangi stated that the investment will support the company’s tech-first, standardised approach to backpacking, enabling it to grow from its current 2,500 beds to a targeted 10,000 beds by March 2026. The funding will also allow The Hosteller to expand its reach and capture new audiences, as backpacker hostels have become increasingly popular with Gen Z and millennial travellers since the pandemic.
Arjun Vaidya, Co-Founder of V3 Ventures, highlighted the shift in travel preferences among Gen Z, who now favor frequent, budget-friendly getaways over traditional single-holiday plans. He praised The Hosteller’s tech-driven, standardised, and affordable approach as perfectly aligned with this trend, emphasising the company’s strong execution and future potential in the consumer travel market.
The Hosteller plans to use the capital infusion to reinforce its presence in popular locations like Rishikesh, Manali, Bangalore, and Delhi, while also expanding to new travel destinations. The investment will fuel the company’s mission to offer high-quality, immersive travel experiences across India’s key tourist spots, fostering a deeper connection with the growing backpacker community.
