IAN backs hostel chain Roadhouse
Goa-based startup Roadhouse Hostels Pvt Ltd, which runs a chain of hostels targetted at backpackers, has raised an undisclosed amount of investment from Indian Angel Network (IAN).
Ambarish Raghuvanshi and Vikas Kuthiala of IAN have led this round of investment and will join the board of the company, a statement from Roadhouse said.
“Our investment will be used to roll out a network of hostels in India and to hire the right people to supplement the current team,” said Raghuvanshi.
Raghuvanshi is co-founder and former CFO of Info Edge (India) Ltd while Kuthalia is managing director and founder of First India Assistance.
The new capital will be used to launch operations in five cities, build the brand, and developing technology and human resources.
Roadhouse Hostels is currently operational in Goa and Jaipur. These hostels provide air-conditioned dormitories and private rooms, as well as means of recreation.
Roadhouse co-founder Uday Jhamb said the properties are taken on a long-term lease and run by the company. He added that Roadhouse plans to run all properties and will not go for the branded marketplace model adopted by OYO Rooms.
Roadhouse Hostels was founded in 2014 by Uday Jhamb, an XLRI alumnus, Rajesh Borah, who has worked in the hospitality sector, and Shubham Garg, an alumnus of Delhi University.
Zostel, which was recently acquired by OYO Rooms, leads the pack when it comes to backpacker hostels in India. In the branded hotel aggregator space, OYO Rooms is the most funded startup. WudStay Travels Pvt Ltd, which runs room booking portal WudStay.com, has raised $3 million in Series A funding from venture capital firm Mangrove Capital Partners and Nimbuzz CEO Vikas Saxena.
Recently, Indian Angel Network also invested in DesignBids, a Delhi-based project discovery platform for architecture and interior design services. Also, Styledotme Fashion and Lifestyle Pvt Ltd, which operates mobile fashion app Styledotme, has secured funding from IAN (Indian Angel Network) as part of its Small Ticket Funding programme.
India is going through the second phase of growth in startups, now referred to as Startup 2.0. The growth will
Roadhouse Hostels Pvt. Ltd. owns and operates a chain of hostels under a brand name of Roadhouse. It has 2 hostels in Goa and Jaipur. It offers air-conditioned dormitories with bunk beds and private rooms. It also offers services includes free WiFi, individual reading lights by the bed, on-order meals service, facility to cook, books, games, travel services and transportation services. It caters to backpackers who are roaming around to experience the cool vibe of the world. The company was founded in 2014 and is based in Bardez, Goa.
Indian Angel Network Services Pvt. Ltd. is a group of angel investors including entrepreneurs and chief executive officers. It provides funding solutions to startup and early stage ventures operating in various sectors such as agriculture, food processing, banking, financial services, biotech, pharmacy, life sciences, clean tech, water, education, healthcare, information technology products and services, media, entertainment, mobile value added services, retail, telecom, embedded domains, travel, tourism, hospitality, knowledge process outsourcing and business process outsourcing. The company invests between $0.3 million and $1 million with an average of about $0.4 million to 0.6 million and exiting over a 3 to 5 year period through a strategic sale. The company was founded in 2005 and is based in New Delhi, India.
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Styledotme Fashion and Lifestyle Pvt. Ltd. owns and operates a mobile application software under the brand name of Styledotme. It helps users to make quick fashion decision through networking of friends and expert decision. The app allows users to instantly get connected with their friends and followers and ask them to vote for the selected choices. The company was incorporated in 2015 and is based in Delhi, India.