[Funding News] The Hosteller Secures $4 Mn Series A Funding Round from V Cube Ventures 

Chain of backpacker hostels In its Series A round, which was led by V Cube Ventures and included the participation of Lets Venture Angel Fund, Angelist, and numerous other investors, The Hosteller has raised Rs 32 crore (approximately $4 million).

A special resolution has been passed by the board of directors at The Hosteller to issue 10 equity and 64,281 Series A compulsory convertible preference shares at an issue price of Rs 4977.5 each in order to raise Rs 32 crore or $4 million.

LV Angel Fund, Merlin Marketing, and AngelList each contributed Rs 2.5 crore, Rs 50 lakh, and Rs 1.5 crore to the funding round, with V Cube Ventures leading the way with a Rs 22 crore investment. Fourteen additional angel investors contributed the remaining sum.

The company will allocate these funds to marketing, hostel expansion, and other general purposes, as indicated in the filings.

The Mumbai-based company has received funding after a three-year hiatus, following the completion of its $1 million pilot round in 2021.

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V Cube Ventures will hold a substantial 15% of the company following the recent proceeds, followed by Lets Ventures, which holds 3.45%. Pranav Dangi, the company's founder and CEO, and his family collectively own 35.28% of the organization.

The Hosteller is a chain of backpacker hostels that was established in 2014 and provides high-quality, affordable, and experiential accommodation. At present, the organization operates over fifty hostels throughout India.

About The Hosteller

Founded in 2015 by Pranav Dangi, The Hosteller, India's largest self-operated backpacker hostel chain, is present across India with 55+ hostels.

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