Backpacker hostel chain The Hosteller is working to standardize its operations and facilities across all of its properties to establish itself as a stress-free option for travelers, according to Founder and CEO Pranav Dangi. The company recently secured Rs 150 crore in funding to facilitate expansion throughout India.
In an interview with YourStory, Dangi stated that backpacker hostels will be the preferred accommodation for India’s young travelers within the next five years.
The Hosteller, which began with a single hostel in Jaipur in late 2014, has expanded its network to include 75 properties in 50 destinations, ranging from Tier I to Tier III cities and more remote locations. The chain has served 25 lakh travelers and intends to establish a pan-India presence within three years, with a goal of 200 to 250 properties and 25,000 beds.
Dangi believes that the backpacker hostel category will mature over the next five to ten years, with increasing numbers of people opting for this alternative form of accommodation. He anticipates that this category will become a well-established substitute for the hotel sector.
Dangi notes that travelers require four essential elements: accommodation, food and beverage (F&B), mobility, and experiences. The Hosteller is actively developing offerings in each of these areas.
Venture capital inflow into the startup ecosystem continues to decline, with total funding this week falling below $100 million for the second time this month. This decrease is primarily due to the absence of large-value deals.
Funding for the fourth week of April totaled just $81 million across 22 deals, a slight increase from the $70 million recorded the previous week.
This marks the fourth instance this year that weekly VC funding has remained below $100 million, highlighting the ongoing challenges that the Indian startup ecosystem faces in securing capital.
Pre-Series A and Series A funding stages were the only areas that saw activity this week, continuing a trend observed over the past two years. There is hope that VC funding will rebound in the second half of the year.