GoSTOPS, India's leading youth travel hostel brand, has raised Rs 35 crore ($4.2 million) in a Series A funding round led by Blume Ventures, with additional support from existing investors including 1Crowd, Mumbai Angels, Chennai Angels, Indian Angel Network, Lead Angels, and Yuj Ventures.
Over the next two years, the company intends to expand its lodging capacity from 2,500 to 10,000 beds across 100 locations with the help of this most recent round of equity financing. According to the company, the money will be used to upgrade technology, increase operational efficiency, and improve the social and experiential elements of its hostels. Furthermore, goSTOPS is in the process of forming debt partnerships to support its expansion plans.
Pallavi Agarwal and Pankaj Parwanda founded goSTOPS, which has positioned itself at the forefront of youth travel in India. "At goSTOPS, we are redefining how young travellers experience India by providing vibrant, social, and design-driven spaces for the next generation. This investment reflects our investors' confidence in our vision and the category we are developing. With their continued support, we are poised to grow goSTOPS into India's most popular youth travel brand—by expanding our footprint while remaining true to our promise of making the transformative power of travel accessible to young Indians," said Pallavi Agarwal, goSTOPS' founder and CEO.
Ashish Fafadia, Partner at Blume Ventures, praised goSTOPS' ability to scale quickly while maintaining strong unit economics through effective asset management and technology-driven operations. He expressed enthusiasm for supporting the company as it continues to transform India's youth travel segment.
"goSTOPS has created a brand that defines a category by fusing technological efficiency, astute asset management, and in-depth operational knowledge. The team's perseverance and strategic vision are evident in their ability to maximize unit economics while scaling quickly. As they continue to grow and revolutionize the youth travel experience in India, we are thrilled to be a part of their journey," 1Crowd co-founder Anil Gudibande went into further detail.
70% of young tourists in India now choose hostels over conventional hotels, according to industry reports, demonstrating the rising demand for affordable, neighborhood-based lodging. goSTOPS strives to satisfy this demand by offering carefully chosen experiences and reliable service standards through its company-managed properties.
