New Delhi: The Hosteller, India’s largest branded hostel chain, has raised ₹150 crore in a Series B funding round led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and several prominent family offices. The round marks the largest institutional fundraise ever secured by a backpacker hostel company in India.
The funding represents a significant milestone for the company, reinforcing its leadership in India’s rapidly expanding backpacking and experiential travel segment. The Hosteller plans to utilise the fresh capital to accelerate expansion across key travel destinations, enhance operational efficiencies, and further strengthen its brand presence.
Founded in 2014, The Hosteller currently operates over 75 properties across 13 states and has hosted more than 2 million unique travellers to date. Over the past 12 months alone, the company has added 30-plus new properties while increasing traveller capacity by nearly 70 percent.
Looking ahead, the company aims to scale up to 25,000 beds nationwide within the next 36 months. It is also preparing to launch a travel super app that will integrate accommodation, food and beverage, mobility, and curated travel experiences into a single platform.
Commenting on the development, Pranav Dangi, Founder and CEO of The Hosteller, said,
“We started The Hosteller because Indian travellers deserved better than a choice between overpriced hotels and unreliable budget stays. Eleven years and over two million travellers later, the model has proven itself. This round is about sustained acceleration towards 25,000 beds, a full-stack travel platform, and building the kind of company that can define this category for decades. We are on a path to creating a truly enduring public hospitality brand out of India.”
Soham Avlani, Founding General Partner at PROMAFT Partners, highlighted the shift in India’s travel landscape, stating that younger travellers increasingly value experiences over conventional star ratings and that The Hosteller is well-positioned to lead this transformation.
“The unit economics of this business are exceptional. Occupancy, repeat customer rates, and revenue per bed outperform many budget hotel chains at comparable price points. When travellers begin choosing destinations based on where your brand opens next, you are no longer just a hostel company—you are a travel platform,” he said.
Arjun Vaidya, Co-Founder of V3 Ventures, praised the company’s post-Series A performance, noting that its rapid expansion, consistency across 75-plus properties, and operational discipline made continued investment in the current round an easy decision.
Mohit Gulati, Chief Investment Officer of ITI Growth Opportunities Fund, said India’s experiential travel market remains in its early stages, but The Hosteller has already emerged as the category leader.
“The Hosteller is one of those rare businesses where the numbers speak for themselves. Occupancy, repeat rates, and revenue per bed consistently demonstrate the strength of its business model across locations and seasons. We are excited to support the company as it scales toward becoming a defining public hospitality brand from India,” he stated.
With this latest funding round, The Hosteller becomes the best-capitalised hostel company in India, further strengthening its position as the most credible contender to build a large-scale public hospitality brand in the backpacker accommodation segment.
Merisis Advisors acted as the exclusive advisors to The Hosteller for the transaction.
