GoStops Hostel Chain Raises Funding to Expand
Photo Credit: GoStops hostel at Library Road in Mussoorie, Uttarakhand. GoStops
Skift Take
GoStops' successful Series A funding is an indicator of investor confidence in the growing popularity of alternative accommodations. As young Indians with focus on budget and unique experiences take over the travel scene in the country, GoStops has the potential to gain, provided it can keep up with rising competition.
Indian hostel chain GoStops has raised INR 350 million ($4 million) in its Series A funding. The company is planning to use the funds to expand its inventory by four times: From 2,500 keys currently to 10,000 beds over the next two years. According to a statement, it will grow its presence to 100 destinations in India, up from close to 30 locations at present.
It also aims to use the funds to strengthen its operations, improve technology, and enhance the social and experiential aspects of the properties. This is in line with Indian travelers’ growing preference for new experiences during their trips.
Demand for Hostels in India: As young and budget-conscious Indians fuel travel, hostels are emerging as a key alternative accommodation. Pranav Dangi, founder and CEO of backpacker hostel chain The Hosteller earlier told Skift that the backpacking culture in India was also contributing to the growing popularity of hostels.
“Hostels provide affordable accommodation as well as a sense of commu
