Traveltech startup The Hosteller has raised INR 32 Cr (approximately $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 passed a special resolution to issue 10 equity shares and 64,281 Series A compulsorily convertible preference shares (CCPS) at a premium of INR 4,977.50 each, raising a total of INR 32 Cr, according to regulatory filings.
The company plans to use the funds to expand its business operations. Additionally, The Hosteller has proposed raising further capital through private placement and preferential issuance of equity shares and Series A CCPS.
Founded in 2015 by Pranav Dangi and Sumit Mishra, The Hosteller provides affordable and accessible backpacker hostels across India, catering to budget-conscious travelers.
Verlinvest-backed V Cube Ventures launched its Indian operations in April 2023. Its portfolio includes several consumer brands such as Kuku FM, Eka Care, Cuure, and Dil Foods.
The investment comes at a time when the travel and tourism industry is witnessing a resurgence after the pandemic. According to industry reports, the hospitality sector experienced nationwide occupancy of 66.1% and an average daily rate (ADR) of INR 6,869 in 2023, marking the highest in a decade.
In another recent development in the sector, hospitality giant OYO acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal, signaling its continued global expansion efforts.