Hostel chain The Hosteller has raised Rs 32 crore (approximately $4 million) in its Series A round led by V Cube Ventures with the participation of Lets Venture Angel Fund, Angelist, and several other investors.

The board at The Hosteller has passed a special resolution to issue 10 equity and 64,281 Series A compulsory convertible preference shares at an issue price of Rs 4977.5 each to raise Rs 32 crore or $4 million, company internal documents from RoC shows.

V Cube Ventures spearheaded the funding round with an investment of Rs 22 crore, while LV Angel Fund, AngelList, and Merlin Marketing contributed Rs 2.5 crore, Rs 50 lakh, and Rs 1.5 crore. The other amount was injected by 14 other angel investors.

As per company, they will use these funds for the expansion of hostels, marketing, and other general purposes.

The funding has come after a gap of three years for the Mumbai-based company as it closed its $1 million seed round in 2021. The company has been valued at around Rs 182 crore or $22 million post-allotment.

V Cube Ventures will hold a significant 15% of the company followed by Lets Ventures which commands 3.45%. Its founder and Chief Executive Officer Pranav Dangi along with his family holds 35.28% of the company.

Founded in 2014, The Hosteller is a chain of backpacker hostels that offers experiential yet affordable and quality lodging. The company currently has more than 50 hostels across India.

The company 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. It also plans to add 75 new properties this year.

 

visit: gamicaltech.com hosteller