Youth hostel startup goStops raises investment from Atraxn Partners

Youth hostel startup goStops raises investment from Atraxn Partners
goStops founders Pallavi Agarwal and Pankaj Parwanda
3 Mar, 2020

goStops, the youth hostel company owned by New Delhi-based Gostops Hospitality, has raised an undisclosed amount in a seed funding round from Atraxn Partners, an angel investor firm headed by Nirmal Singh and Pawan Kumar.

Some returning investors, whose names the company declined to disclose, also participated in the round.

With this, the company has raised a total capital of $1 million, the company told TechCircle in an email.

The startup raised an undisclosed amount of capital in an angel funding round last year from founder and managing director of Nazara Technologies Nitish Mittersain, former managing director at Copal Partners Sorabh Agarwal, founder and former managing director at The Smart Cube Sameer Walia, co-founder of Dimdim.com Rohit Shankar and owner of South Handlooms Sunil Kumar Singhvi, among others.

“With the fresh investment, we are hopeful of expanding our offerings as well as double the bed capacity in the next 12 months,” Pallavi Agarwal and Pankaj Parwanda, founders of goStops, said in a statement.

Agarwal and Parwanda started goStops in 2012. The company leases, manages and franchises real estate assets, which are then designed, sold and operated as youth hostels.

goStops, whose inventory consists of about 70% dormitories and 30% private rooms, has a presence in 13 locations including Agra, Amritsar, Bir, Dalhousie, New Delhi, Jaipur, Jaisalmer, Mumbai, Naggar, Rishikesh, Udaipur and Varanasi.

“We are excited to partner in the growth of goStops. The youth traveller market in India is all about excitement and experience. We are sure goStops as a standardised one-stop experience for youth travellers is going to bring global and quality experience for its travelers and that is why it stands apart from its contemporaries,” Atraxn said.

Atraxn has also invested in fintech company Aggrepay, media and PR firm Clarity Communication, Mumbai-based edtech company Board Infinity, and social media company DYT.