Hostel chainn startup The Hosteller has raised ₹150 crore in a Series B round led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and prominent family offices.
The company plans to deploy the fresh capital towards accelerating its expansion across key travel destinations, while further strengthening operational efficiencies and brand building.
Founded in 2014, the company currently operates over 75 properties across 13 states and has hosted over 20 lakh unique travellers. Over the past 12 months, the company added nearly 30 properties and grew traveller capacity by nearly 70%.
The Hosteller is targeting 25,000 beds nationwide within the next 36 months and is preparing to launch a travel super app integrating accommodation, F&B, mobility, and curated experiences into a single platform, it oted in its statement.
Pranav Dangi, Founder and CEO, The Hosteller, said: “We started The Hosteller because Indian travellers deserved better than a choice between overpriced hotels and unreliable budget stays. 11 years and 20 lakh travellers later, the model has proven itself. This round is about sustained acceleration to 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 building a truly public, enduring hospitality brand out of India.”
Soham Avlani, Founding General Partner, PROMAFT Partners, said, “The occupancy, the repeat rates, and the revenue per bed all outperform what we see in budget hotel chains at comparable price points. He chose substance over vanity scale, and built something that actually works at the unit level — property by property. When your customers are choosing destinations based on where your brand opens next, you are not a hostel company. You are a travel platform.”
This is PROMAFT Partners’ second investment from its debut $100 million Series A/B fund, following its investment in Wiom.
It competes with goSTOPS, Zostel, and Backpackers Panda, among others.