In its Series A round, which was led by longtime investor V3 Ventures, the Chain of Backpacker Hostels Hosteller raised Rs 48 crore, or about $5.7 million, through a combination of debt and equity infusion.
V3 Ventures led this funding mix with Rs 32 crore in equity, and Blacksoil finished the round with Rs 16 crore in venture debt. The Hosteller is now valued at about Rs 200 crore (about $25 million) thanks to the new investment.
On September 4, 2024, Entrackr was the only source to report on the Series A round. The Mumbai-based company closed its $1 million seed round in 2021, so the funding comes three years later.
The money will be used to increase its footprint in well-known Indian cities like Delhi, Bengaluru, Manali, and Rishikesh as well as to investigate new travel destinations.
A chain of backpacker hostels called The Hosteller was established in 2014 and provides high-quality, reasonably priced accommodations. Over 50 hostels are currently operated by the company throughout India.
According to reports, the company made a net profit of Rs 4 crore during the most recent fiscal year, which ended in March 2024, and exceeded the revenue threshold of Rs 55 crore. Additionally, this year it intends to add 75 new properties.
Backpackers Panda, Wudstay, and goSTOPS are some of its rivals.
