Backpacker Hostel Raising Funds In Delhi

About Business

A hospitality company launched in 2025, focused on expanding into India’s leading cities and tourist destinations. The business operates under a backpacking hostel model catering to long-duration travelers. The company aims to build a scalable and profitable network of hostels across high-demand locations.

Business Model
- Properties taken on long-term lease agreements
- The company manages all operations while Zostel handles branding, marketing, and sales
- Revenue-sharing model: a percentage of revenue goes to Zostel, with the remainder retained by the company

Current Operations
- Indore: 1 property, 24,000 sq. ft. area with 64 bed capacity
- Overall average occupancy: ~75%

Expansion Plans
Next planned locations include Kolkata, Ahmedabad, and Pune, with growth driven by the increasing demand for affordable travel accommodation.

Financial Performance & Projections

- Operations commenced in June 2025
- Revenue generated so far: ₹25 lakhs with ~30% EBITDA margin
- Projected revenue: ₹1.2 crore by year-end

Clientele type

Tourists and travellers, backpackers and adventure seekers.

Premises

LEASED

Lease per month (in INR): 2.50 L

Security Deposit (in INR): 7.50 L

Carpet Area: 24,000 sq ft

Asking Price Includes

The company is seeking to raise ₹1.5 crore in debt funding at 12% interest, structured over a 10-year tenure with a 6-month moratorium, to support its planned expansion. They are also open the equity funding.

Asking Price

INR 1.50 Cr

Minimum ticket size

INR 1.50 Cr

Reason

The funding will support expansion in India’s growing backpacker hostel segment, enabling the swift scaling of premium properties.

Licenses

FSSAI and other related licences.

More Details

The leadership team consists of experienced professionals with strong expertise in the hospitality and tourism sector. Collectively, they bring over a decade of experience in conceptualizing, launching, and scaling successful projects, including backpacker hostels, boutique stays, and integrated travel experiences across India.

One leader specializes in strategic vision and business growth, with a proven track record of building profitable and scalable hospitality ventures. The other has deep expertise in operations management, excelling in planning, process optimization, team leadership, and delivering superior guest experiences.

Together, this combination of strategic insight and operational excellence creates a solid foundation for driving the company’s expansion in India’s growing hospitality and tourism industry.

The founder also operates two properties in Leh, managed under a separate company.