By Abhay Ray 
Introduction
Travel hostel startup GoStops has raised ₹35 crore (about $4.2 million) in a funding round led by homegrown early-stage venture capital firm Blume Ventures. The round also saw participation by 1Crowd and other existing investors, including Mumbai Angels, Chennai Angels, Indian Angel Network, Lead Angels, and Yuj Ventures. With this latest round of equity financing, the company aims to expand its accommodation capacity from 2,500 to 10,000 beds across 100 locations within the next two years. The funding will be used to enhance operational efficiency, upgrade technology, and elevate the social and experiential aspects of its hostels, the company said. Additionally, goSTOPS is in the process of securing debt partnerships to further bolster its expansion plans.
What does goSTOPS do?
Founded by Pallavi Agarwal and Pankaj Parwanda, goSTOPS is focused on redefining travel for youth with its vibrant, design-led social spaces. GoStops is one of the most unique companies one would come across. It is India’s fastest growing premium chain of youth traveler hostel and has been raising an undisclosed amount of funds as a part of its funding in 2019. Later, in 2020, it raised another round of funding from Atraxn Partners, which is an angel investor firm headed by Nirmal Singh and Pawan Kumar.Company has established a strong presence across India, with properties in popular tourist destinations such as Goa, Rishikesh, Delhi, and Jaipur. goSTOPS aims to redefine the way millennials and Gen Z experience travel, combining affordable stays with a community-oriented environment.
At goSTOPS, we are redefining how young travellers experience India offering vibrant, social, and design-led spaces for the new generation. This investment reflects the trust our investors have in our vision and the category we are building. With their continued support, we are set to scale goSTOPS into India’s most preferred youth travel brand by expanding our footprint while staying true to our promise of making the transformative power of travel accessible to young Indians,” Pallavi Agarwal, founder and CEO, goSTOPS, said.
Purpose of fundraising
With this fresh infusion of equity capital, goSTOPS is set to expand its capacity from 2,500 to 10,000 beds across 100 locations in the next 24 months, achieving 4X growth.
“With their continued support, we are set to scale goSTOPS into India’s most preferred youth travel brand by expanding our footprint while staying true to our promise of making the transformative power of travel accessible to young Indians,” Agarwal added.
The funding will be used to strengthen operations, enhance technology, and elevate the social and experiential aspects of its existing properties. In addition, the startup is also finalising debt partnerships to expand its war chest for the brand’s expansion.
Blume Ventures Backs goSTOPS with ₹35 Crore in Series A Funding
goSTOPS, a popular budget accommodation provider for young travelers, has raised ₹35 crore in its Series A funding round, led by Blume Ventures. The funds will be used to accelerate the company’s growth, expand its presence in both tier-1 and tier-2 cities, and enhance its technology platform. The capital will also support goSTOPS in diversifying its offerings, including adding new premium stay options and services catering to digital nomads and group travelers. This investment marks a significant step in the company’s mission to become a leading player in India’s affordable travel sector.
“We’re excited to partner with Blume Ventures, whose support will help us scale our operations and improve the customer experience,” said CEO of goSTOPS. The company, known for its clean, vibrant, and community-driven hostels, aims to provide more travelers with affordable and engaging accommodation options. Blume Ventures, a prominent VC firm, expressed confidence in goSTOPS’ ability to lead the growing demand for affordable travel solutions, as the sector continues to recover post-pandemic.
Investors Openion
Talking about the investment, 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. Their ability to optimise unit economics while scaling rapidly is a testament to the team’s tenacity and strategic vision. We are excited to back their journey as they continue to expand and transform the youth travel experience in India.”
Anil Gudibande, co-founder of 1Crowd, who has co-lead the funding, said, “As an early backer of goSTOPS, we always believed that the brand was more than just a hostel chain it’s a youth brand with the potential to shape travel and lifestyle choices. The founders’ ingenuity, and deep understanding of their audience have been key to their success. Their team isn’t just about asset utilisation; it’s about creating experiences that resonate with young travellers.”
Conclusion
With the successful raise of ₹35 crore in its Series A funding round, goSTOPS is poised for significant expansion and growth. The backing from Blume Ventures will enable the company to enhance its offerings and broaden its footprint across India. As demand for affordable and community-driven travel experiences continues to rise, goSTOPS is strategically positioned to capitalize on this trend, offering budget-friendly stays tailored to young, adventurous travelers. This funding marks a pivotal moment in the company’s journey, fueling its mission to redefine travel accommodations and cater to an evolving market. As goSTOPS moves forward, the combination of strong investor support and an expanding customer base will ensure its continued success in the competitive Indian travel industry.
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