GoStops, a hostel chain focused on young travellers, has raised an undisclosed sum from angel investors including Nitish Mittersain, founder and managing director (MD) of mobile games company Nazara Technologies Ltd, according to reports.
Other investors include former Copal Partners MD Sorabh Agarwal, The Smart Cube co-founder Sameer Walia, Dimdim co-founder Rohit Shankar, South Handlooms managing partner Sunil Kumar Singhvi, and other corporate executives, YourStory reported.
VCCircle has reached out to Delhi-based Stops Hospitality Pvt. Ltd, which operates GoStops, on the details of the investment and will update this report accordingly.
The company will use the funds it has raised to expand its presence across the country by doubling its bed capacity in one year. It will use the capital to enhance its product, add new revenue-generation options, increase its marketing and build out its team.
GoStops co-founder and chief executive Pallavi Agarwal Parwanda said the startup is aiming to solve the problem of lack of good quality short-stay options for travellers by providing affordable, social and experiential services.
The company was founded in 2014. According to its website, the properties provide services such as meals, cleaning and internet services.
The co-living segment in India
The co-living asset class has gained traction in India in recent months. Several startups have ventured into the segment, attracting investments from both domestic and global institutions. Several real estate investors have also set up co-living and co-working firms or backed such startups.
For example, in August, the Embassy Group said it had forayed into co-living through EPDPL Co-Living Pvt. Ltd, which will target students from colleges and professionals with multinationals in Grade A business parks across Bengaluru, Pune, Hyderabad, Delhi-NCR (National Capital Region), Mumbai, and Chennai.
In June, a private equity fund of JM Financial Ltd said that it was investing Rs 40 crore in Coimbatore-based co-living space provider Isthara Parks Pvt. Ltd. Isthara Parks said that it would use the money to fund its expansion plans in its existing markets of Hyderabad, Bengaluru and the National Capital Region initially, and in other key cities in Asia afterwards.