The Hosteller Secures Rs 150 Crore in Landmark Series B Funding to Fuel Aggressive Expansion
Mumbai, April 16, 2026: Branded backpacker hostel chain, The Hosteller, has officially announced the successful closure of a Rs 150 crore (approximately $16 million) Series B funding round. This injection of capital, hailed as the largest institutional funding round ever secured by a backpacker hostel company in India, marks a pivotal moment for the hospitality startup.
The round was co-led by PROMAFT Partners and V3 Ventures, with significant participation from the ITI Growth Opportunities Fund, Merisis Wealth Trust, and several prominent family offices.
Strategic Growth and Future Roadmap
Founded in 2014 by Pranav Dangi, The Hosteller has established itself as a leader in the experiential travel segment. The company currently operates over 75 properties across 13 states and has served more than 20 lakh unique travelers. Over the past 12 months alone, the brand expanded its footprint by adding over 30 new properties, achieving a 70% growth in traveler capacity.
With this new infusion of capital, the company aims to:
Scale Operations: Aggressively expand its network to reach a target of 25,000 beds nationwide within the next 36 months.
Launch a 'Travel Super App': Develop a comprehensive platform that integrates accommodation, food & beverage (F&B) services, mobility, and curated local travel experiences into a single, seamless user interface.
Enhance Brand & Efficiency: Further strengthen operational excellence and brand visibility across key travel destinations in India.
Leadership Commentary
"We started The Hosteller because Indian travellers deserved better than a choice between overpriced hotels and unreliable budget stays," said Pranav Dangi, Founder and CEO of The Hosteller. "This round is about sustained acceleration to 25,000 beds, a full-stack travel