Backpacker hostel chain The Hosteller on Monday said it has raised $1 million in a fresh funding round led by FAO Ventures & CA Holding LLP.
The round also saw the participation of other investors such as SUNiCON Ventures, Shubhkam Ventures, Jito Angel network and FAAD Network. With the freshly infused capital, The Hosteller plans to grow the number of hostels from 12 hostels to 50.
Founded in 2014 by Pranav Dangi, The Hosteller offers experiential and quality lodging with several activities that young travellers from across the globe can enjoy.
The brand’s hostels are equipped with multiple facilities such as shared dormitories, decked common spaces, bonfire or an activity area, bar and cafe, among other services.
“People are looking for more experience-driven stays that are pocket-friendly, safe and comfortable rather than just luxury when it comes to their vacations. The Hosteller was founded with the aim of creating lasting memories for everyone looking for more than just a vacation in India. The fresh capital infusion will help us reach new heights and we are happy to have marquee investors backing us in our journey,” said Dangi.
The brand further seeks to raise $10 million as a part of their Series A round to expand its footprint in India and Southeast Asia.
“We were glad to lead the round for The Hosteller which has demonstrated a very good understanding of the space and has created a recognizable brand with excellent unit economics giving us the confidence that they can become a dominant player in the Indian hospitality landscape and move even outside the country in due time. Instead of being a pure play aggregator like some of the larger players,” said Farooq A Oomerbhoy, founder, FAO Ventures.
“The Hosteller has created a model which is backed by consistent quality and value added services delivered at a price which is accessible to the larger population of India,” added Oomerbhoy.