The Indian startup circuit has produced many companies that have performed exceedingly well in the bigger stage. With a huge population, India has produced many successful businessmen who have revolutionized the startup circuit. Now, amongst the startup circuit, the hostel industry has been one of the most unique areas where entrepreneurship has left a small mark.
Well, in this particular area too, a company named GoStops, has been making giant strides. This company has been making life much easier for Indian students as it is quite difficult to get a proper living space when a student is far away from home. So, let us have an insight into the story of GoStops.
Quick Facts – GoStops
| Company Name | GoStops |
|---|---|
| Headquarter | Delhi, India |
| Sector | Hospitality |
| Founder | Pallavi Agarwal, Pankaj Parwanda |
| Founded | 2013 |
What is GoStops?
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.
The company came into the circuit in 2013 and it was founded by a Delhi-based couple Pallavi Agarwal and Pankaj Parwanda. The company leases manages, franchises real estate assets, which are later on designed, transformed, marketed, sold, and operated as youth hostels in business and leisure locations which are often preferred by the millennials. Almost 70 percent of its inventory comprises dormitories and 30 percent constitutes of private rooms.
Rishabh Rathi
Launching GoStops
In 2012, the CEO and co-founder Pallavi and her husband went backpacking across Europe and returned to the country being fascinated by the hostel culture. The first thing that crossed their mind was why a similar model for travelers looking for premium quality social accommodations did not exist in India! Then, Pallavi decided that Varanasi will be the first choice to open the hostel because the city attracts both foreigners and tourists equally.
Currently, the company operates 12 hostels in Agra, Amritsar, Bir, Dalhousie, Delhi, Jaipur, Jaisalmer, Mumbai, Nagpur, Rishikesh, Udaipur, and Varanasi.
Apart from that, they have a total capacity of 800 beds across the country and their annual turnover is about 800 crore. As per the team of GoStops, they have grown at the rate of 2.5 times each year and have been making a mark in the startup ecosystem.
GoStops Funding
| Announced Date | Transaction Name | Number of Investors | Money Raised |
|---|---|---|---|
| Mar 2, 2020 | Seed Round – GoStops | 1 | N/A |
| Nov 2, 2019 | Angel Round – GoStops | 5 | N/A |
Investors of GoStops
| Investor Name | Lead Investor | Funding Round |
|---|---|---|
| Atraxn Partners | Yes | Seed Round – GoStops |
| Sorabh Agarwal | No | Angel Round – GoStops |
| Rohit Shankar | No | Angel Round – GoStops |
| Sumeer Walia | No | Angel Round – GoStops |
| Sunil Kumar Singhvi | No | Angel Round – GoStops |
| Nitish Mittersain | No | Angel Round – GoStops |
Vidhi Punamiya
For millennials by millennials
The co-founder Pallavi graduated from Kamla Nehru College in 2003. Later, she started as a consultant with The Smart Cube in 2004. There, she gained expertise in industrial and monetary services. Later on, she did her Master’s from the International Management Institute in 2007, and worked at Tata Capital, MNC Millward Brown, and Quantum Consumer Solutions.
Her husband Pankaj is a BE in Electronics and Communication Engineering from Manipal Institute of Technology in Karnataka and is the man behind the startup. Pankaj has worked at Nokia, ZTE, Huawei, and Erricson. After working in the corporate sector, the couple decided to give entrepreneurship a change and implemented the travel-inspired idea.
The company has been a success because the individuals working at GoStops are themselves millennials and they understand their audience. The co-founders and senior management workers are all in their 30s and the rest of them belongs to Gen Y and Gen Z. Presently, the startup has 25 members across product operations, sales and marketing, business development, and support functions.
Although there are a couple of hostel startups in India, the company claims that there are no direct competitors as company like GoStops has a unique business model and is performing exceedingly well in the circuit. This accounts for the fact that the customers can choose from short stay, long stay, and experiential opinions on their website. After one has done the bookings, they can check-in at the properties and avail the services at the hostels. The services are 24X7 security, 24X7 front desks, A/C, Wi-Fi, space for co-work, housekeeping, and many more to name!
Chayanika Goswami
Future of GoStops
Now, the main aim of the company is to expand its footprint across the country by doubling its capacity to 1,600 beds in the next year, and hence, a company like GoStops sets up the benchmark for other companies to follow!