The round also saw the participation of other marquee investors such as SUNiCON Ventures, Shubhkam Ventures, Jito Angel network and FAAD Network.
Further accelerating its rapid growth, The Hosteller, one of India’s fastest- growing backpacker hostel chains, has raised USD 1 million in a funding round led by FAO ventures & CA Holding LLP. The round also saw the participation of other marquee investors such as SUNiCON Ventures, Shubhkam Ventures, Jito Angel network and FAAD Network. With the freshly infused capital, The Hosteller plans to grow the number of hostels from 12 hostels to 50. The brand further seeks to raise USD 10 million as a part of their Series A round to expand its footprint further in India & southeast Asia.
Founded in 2014 by Pranav Dangi, The Hosteller is a one-of-a-kind chain of backpacker hostels that offers experiential yet affordable and quality lodging with several activities that all ‘young-at-heart’ travellers from across the globe can enjoy. The brand’s hostels are equipped with multiple facilities such as shared dormitories, decked common spaces, bonfire or an activity area, bar & cafe, laundry services, visa assistance, and a travel desk, among others, with the assistance being available to travellers 24×7.
Commenting on the latest fundraise, Pranav Dangi, Founder of Hosteller, said, “People are looking for more experience-driven stays that are pocket-friendly, safe and comfortable rather than just luxury when it comes to their vacations. The Hosteller was founded with the aim of creating lasting memories for everyone looking for more than just a vacation in India. The fresh capital infusion will help us reach new heights and we are happy to have marquee investors backing us in our journey.”
“We were glad to lead the round for The Hosteller which has demonstrated a very good understanding of the space and has created a recognizable brand with excellent unit economics giving us the confidence that they can become a dominant player in the Indian hospitality landscape and move even outside the country in due time. Instead of being a pure play aggregator like some of the larger players, The Hosteller has created a model which is backed by consistent quality and value added services delivered at a price which is accessible to the larger population of India,” added Farooq A Oomerbhoy, Founder, FAO ventures.
The Hosteller is the ideal pit-stop for both international and domestic travellers looking to relax, revitalise and enjoy India’s rich heritage while staying in a clean, safe, and sophisticated environment.
Source: Business World