The Hosteller Raises Rs 32 Crore in Series A Funding

Mumbai-based budget accommodation chain, The Hosteller, has secured Rs 32 crore (approximately $4 million) in its Series A funding round led by V Cube Ventures. The investment round also saw participation from Lets Venture Angel Fund, AngelList, and several other angel investors.

Key Highlights:

• The Hosteller has issued 10 equity shares and 64,281 Series A compulsory convertible preference shares to raise Rs 32 crore.
• V Cube Ventures led the funding round with an investment of Rs 22 crore, followed by LV Angel Fund, AngelList, and Merlin Marketing, who invested Rs 2.5 crore, Rs 50 lakh, and Rs 1.5 crore, respectively.
• The company plans to use the fresh proceeds for the expansion of hostels, marketing, and other general purposes.
• The funding round values The Hosteller at around Rs 182 crore (approximately $22 million) post-allotment.

Company Background:

• The Hosteller is a chain of backpacker hostels founded in 2014.
• The company currently has more than 50 hostels across India and offers experiential, affordable, and quality lodging.
• The Hosteller has reportedly crossed the revenue of Rs 55 crore during the last fiscal year ended March 2024 with a net profit of Rs 4 crore in the same period.
• The company plans to add 75 new properties this year.

This funding round will likely help The Hosteller expand its operations and further establish itself as a leading player in the budget accommodation market in India.