The Hosteller Raises ₹150 Crore in Series B Funding Led by Promaft Partners
The Hosteller raises ₹150 crore in a Series B funding round led by Promaft Partners and V3 Ventures to expand across key travel destinations and strengthen its hostel network in India.
nishathapa 
Mumbai, April 2026: The Hosteller, one of India’s fastest-growing backpacker hostel chains, has raised ₹150 crore in a Series B funding round led by Promaft Partners and V3 Ventures, marking the largest institutional funding round secured by a hostel brand in the country.
The funding round also saw participation from ITI Growth Opportunities Fund, Merisis Wealth Trust, and several family offices, reflecting strong investor confidence in India’s rapidly evolving budget and experiential travel segment. :contentReference[oaicite:0]{index=0}
Largest funding round in India’s hostel segment
The ₹150 crore investment represents a significant milestone for the backpacker hostel ecosystem in India, a segment that has seen growing demand driven by younger, experience-focused travellers.
With this round, The Hosteller has positioned itself as a key player in the organised budget accommodation space, highlighting increasing institutional interest in alternative hospitality formats beyond traditional hotels. :contentReference[oaicite:1]{index=1}
Expansion plans across key travel destinations
The company plans to utilise the fresh capital to expand its presence across major travel destinations in India, while also strengthening operational capabilities and brand development.
Founded in 2014, The Hosteller currently operates over 75 properties across 13 states and has hosted more than 20 lakh travellers to date. :contentReference[oaicite:2]{index=2}
The brand is now targeting a significant scale-up, aiming to reach around 25,000 beds nationwide over the next three years, signalling aggressive growth in the organised hostel segment. :contentReference[oaicite:3]{index=3}
Focus on experience-driven travel
The investment reflects a broader shift in India’s travel landscape, where younger travellers are prioritising experiences, affordability, and community-driven stays over traditional hotel formats.
According to investors, The Hosteller’s strong unit economics, high occupancy levels, and repeat customer base position it well to lead this transformation in the budget hospitality space. :contentReference[oaicite:4]{index=4}
The company is also working on expanding its ecosystem through a proposed travel super app, which aims to integrate accommodation, food and beverage, mobility, and curated travel experiences into a single platform.
Growth momentum and operational expansion
Over the past year, The Hosteller has added more than 30 new properties and increased its capacity significantly, reflecting strong demand and rapid scaling capabilities.
The latest funding is expected to accelerate this momentum, enabling the company to strengthen its footprint across both established and emerging travel destinations.
As India’s travel market continues to evolve, the rise of branded hostel chains like The Hosteller highlights the growing importance of affordable, experience-led accommodation in shaping the future of hospitality.
