The Hosteller, an Indian backpacker hostel chain, has raised $4 million (approximately Rs 32 crore) in a Series A funding round led by V3 Ventures. Existing investors LV Angel Fund, FAO Ventures, Synergy Capital Partners, Unit-e Consulting, Ice.VC (backed by Mrunal Jhaveri), Thrive Ventures, Chirag Jain, and several real estate-focused family offices also participated in the round. This latest funding brings The Hosteller’s valuation to around Rs 200 crore (roughly $25 million).

Founded in 2014, The Hosteller has established itself as a go-to brand for affordable, quality lodging and immersive travel experiences. With a presence in over 60 locations across India, including metro cities and scenic destinations in Himachal Pradesh, Uttarakhand, and Karnataka, the company’s self-operated model ensures consistent quality for its guests. CEO Pranav Dangi emphasized their commitment to enhancing the backpacker experience and highlighted the launch of Glu, a tech concierge aimed at further improving customer service.

The newly raised capital will be used to fuel The Hosteller’s ambitious expansion plans, with the startup aiming to grow its footprint to over 150 locations within the next 24 to 30 months. V3 Ventures Co-Founder Arjun Vaidya praised the company’s execution and expressed confidence in its growth trajectory.

For the fiscal year ending March 2024, The Hosteller reported a revenue of Rs 55 crore, with positive net margins. The startup plans to scale up further, adding 50 more properties by the end of this year to meet rising demand. CFO Saksham Khemka noted that the company has experienced 4x growth in the number of locations over the past three years, and aims to maintain this momentum by adding four to five new hostels each month.