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Backpacking Hostels Are The New Thing In Hospitality

By       -   August 1st, 2015

  • In 2011, Rishabh Gupta and his friend Aadil Muscatwala quit high-paying jobs at Merrill Lynch and Deloitte Consulting and with a seed capital of Rs. 50 lakh, launched the ‘Vedanta Wake Up’ hostel in Kerala.



  • While the hospitality industry is struggling to break even across formats, the hostel start-ups have turned profitable — even though the billing on a single bed is as low as Rs. 500 a night.



  • Four years and six hostels later, the duo is now nursing hopes of becoming a pan-India operator. To do this, they are scouting for venture capital of Rs. 30-50 crore.



  • Another chain, Zostel, started just over a year ago by a bunch of IIT-IIM alumni, has hostels in eight locations, including Udaipur and Goa. Zostel wants to go global and is getting ready for its second round of funding. In the first round last year, it raised Rs. 5 crore from a Malaysian angel investor.


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