Traveltech startup The Hosteller has raised INR 32 Cr (around $4 Mn) in a fresh funding round led by V Cube Ventures SA
The round also saw participation from LV Angel Fund, Unit E Consulting LLP, and several angel investors
The company said it plans to use the capital to expand its business operations
Traveltech startup The Hosteller has raised INR 32 Cr (around $4 Mn) in a fresh funding round led by V Cube Ventures SA.
The round also saw participation from LV Angel Fund, Unit E Consulting LLP, and several angel investors.
The board at The Hosteller had passed a special resolution to issue 10 equity and 64,281 Series A compulsorily convertible preference shares (CCPS) at a premium of INR 4,977.50 each to raise INR 32 Cr, as per regulatory filings.
The company said it plans to use the capital to expand its business operations. It has also proposed to raise further capital by way of a private placement and preferential issue of equity shares and Series A CCPS of The Hosteller.
Founded in 2015 by Pranav Dangi and Sumit Mishra, The Hosteller offers various affordable and accessible backpacker hostels in different locations across India for travellers.
Verlinvest-backed V Cube Ventures launched its operations in India, in April last year. Its portfolio companies include consumer brands, including Kuku FM, Eka Care, Cuure and Dil Foods among others.
The investment comes at a time when consumer spending towards travel and tourism has begun to expand after the pandemic period.
As per reports from earlier this year, the hospitality industry witnessed a nationwide occupancy of 66.1% and an ADR (average daily rate) of INR 6,869 in 2023, the highest in a decade, showcasing a sturdy rebound and expansion.
A few weeks ago, hospitality major OYO acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal, in line with its plans of global expansion.
