Backpacker hostel brand goSTOPS has raised INR 35 crore (approximately USD 4.2 million) in its Series A funding round led by Blume Ventures. 1Crowd was the co-lead investor, and existing investors such as Mumbai Angels, Chennai Angels, Indian Angel Network, Lead Angels and Yuj Ventures also participated in the round.
Expansion Plans and Utilization of Funds
With this new funding, goSTOPS plans to scale up from 2,500 to 10,000 beds across 100 locations in the next 2 years. The funds will be used to strengthen operations, upgrade technology and enhance social and experiential aspects of the hostels. The company is also in the process of securing debt funding to further fuel its growth plans.
“This investment is a testament to the trust our investors have in our vision and the category we are building. With their continued support, we will scale goSTOPS into India’s most loved youth travel brand—by expanding our footprint while staying true to our promise of making travel accessible to young Indians,” said Pallavi Agarwal, Founder and CEO, goSTOPS.
Investor Insights and Market Positioning
Blume Ventures invested INR 25 crore in this round and the remaining INR 10 crore from other investors. Ashish Fafadia, Partner at Blume Ventures said, “goSTOPS has built a category defining brand by combining deep operational expertise, smart asset management and tech driven efficiencies. They are able to scale rapidly is a testament to the team’s tenacity and strategic vision.”
Anil Gudibande, Co-founder of 1Crowd said, “As an early backer of goSTOPS, we always believed that goSTOPS was more than just a hostel chain—it was a youth brand that can shape travel and lifestyle choices. The founders’ ingenuity and deep understanding of their audience has been key to their success.”
Financial Performance and Competitor Landscape
goSTOPS Co-founder Pankaj Parwanda said that financially, the company is on track, with the net EBITDA positive for the fiscal year 2025. The company is also projecting a revenue of INR 40 crore for the year. Founded in 2014 by Pallavi Agarwal and Pankaj Parwanda, goSTOPS is a travel and coliving hostel chain. It leases, manages and franchises real estate assets and transforms them into youth-focused hostels. The brand has a presence in over 30 locations across India and gets 60% of its bookings from its website and mobile app.
The company competes with other players in the travel hostel segment like Zostel, The Hosteller and Airbnb. The growing demand for affordable, community-driven accommodations has led to investments in this space. As per industry reports, 70% of young travelers in India prefer hostels over conventional hotels. The global hostel market was valued at USD 4.6 billion (~INR 40,166 crore) in 2023, and it is expected to reach USD 12.1 billion (~INR 1.05 lakh crore) by 2033, growing at a CAGR of 10.20%.
Future Outlook
With this latest funding round, goSTOPS is set to significantly expand its footprint in the youth travel sector, offering vibrant, design-led spaces for digital-native travelers. The company’s tech-driven operational model and strong financial discipline position it well for sustainable growth in the rapidly evolving hostel accommodation market.
As the demand for budget-friendly, community-oriented travel experiences continues to rise, goSTOPS is poised to cement its status as India’s leading backpacker hostel brand.
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