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Accommodation Chain Zostel Secures Angel Funding

May 11, 2014

@ZostelPvt Ltd, an accommodation hostel chain has raised $1 Mn in its first round of funding from Presha Paragash, an angel investor from Southeast Asia.

Proceeds from the latest round will be used to secure a pan-India presence as Zostel looks to expand aggressively and build the Zostel brand amongst travelers. The team also plans to invest heavily on technological infrastructure and building a team of rockstars across various verticals.

Founded in 2013 by seven young travel enthusiasts Dharamveer Chauhan, Paavan Nanda, Akhil Malik, Tarun Tiwari, Chetan Singh Chauhan, Abhishek Bhutra and Siddharth Janghu, Zostel provides affordable, centrally-located and friendly accommodation to young travellers. It also provides AC dormitories, laundry service, TV, internet, library, board games and other interactive facilities at a price R500 per night.

The idea sprung up when a group of friends during their travels, found it difficult to find a clean and tidy room within an affordable budget. This led this team of IIT-IIM and MDI graduates to come up with this concept.

Zostel currently operates in two cities Jaipur and Jodhpur and plans to setup 7-8 hostels in the next ten months in cities like Delhi, Goa and Agra by taking properties on long term lease. It also plans on launching in international markets once it has secured firm ground in India.

The startup got in touch with its angel Presha during Wharton India Economic Forum (WIEF) Startup Competition, in which the startup had emerged as the winner.

Presha Paragash, a recent graduate from Wharton, was looking for opportunities to diversify the family's business portfolio which currently primarily focuses on palm oil.

As part of the fund raising, Presha will be joining Zostel's board.

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Source: DealCurry (India)

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