The Hosteller Secures ₹150 Cr Series B to Build India’s Leading Youth…

Team S · 2026-04-21T16:56:42.000Z

India-based hospitality startup The Hosteller has raised ₹150 crore (approximately $18 million) in a Series B funding round, marking one of the largest institutional fundraises in India’s hostel and backpacker accommodation segment. The investment highlights growing confidence in India’s fast-expanding experience-led travel market. The round was led by PROMAFT Partners and V3 Ventures, with participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and prominent family offices. The financing reflects strong investor belief in branded budget hospitality models focused on young domestic travellers. Founded in 2014, The Hosteller has built one of India’s largest hostel networks, operating more than 75 properties across 13 states. The company says it has already hosted over 20 lakh travellers, benefiting from rising demand for affordable, community-driven stays among Gen Z and millennial travellers. Over the past 12 months, the startup added more than 30 new properties and increased capacity by nearly 70%, demonstrating rapid expansion momentum as domestic tourism rebounds strongly. The newly raised capital will be used to expand into key travel destinations, strengthen operational efficiency, and scale brand presence nationwide. The company is targeting 25,000 beds over the next 36 months, significantly expanding its national footprint. The Hosteller also plans to launch a travel super app integrating accommodation, food & beverage, mobility, and curated experiences into a single platform positioning itself beyond hostel stays into a broader youth travel ecosystem. As Indian travellers increasingly prioritize experiences over traditional hotel formats, The Hosteller is emerging as a category leader in organized budget travel and experiential hospitality.

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The Hosteller Secures ₹150 Cr Series B to Build India’s Leading Youth… | Newnex