Backpackers' hostel start-up Roadhouse raises funding from Indian Angel Network

The company will use the capital to add five additional properties by the end of 2016

Goa-based startup Roadhouse Hostels has raised an undisclosed amount from Indian Angel Network (IAN) led by chief financial officer of Naukri Internet Services Ambarish Raghuvanshi and Vikas Kathulia who will be joining the board.

Roadhouse Hostels is a chain of backpackers' hostel and it was started by a group of school friends in 2014 with their first hostel starting its operations in Goa in November the same year.

Currently, Roadhouse is operational in Goa and Jaipur and planning to add five more cities in near future.

The fundraising will support company's proposed expansion and setting up new properties, to build the brand, expand the team and infuse technology to support the venture.

Lead IAN investor Raghuvanshi commented that the backpacker space is seeing a lot of interest from founders and investors. However, the key will be to build an organisation model to replicate many such hostels and to deliver superior and consistent service.

"We invested when they had a hostel in Goa. They now have one in Jaipur. More importantly, I feel that with their passion and complementary skills, they have a real chance to build an organisational structure that will help create a network and community of past and potential users," he said.