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Tag: zostel

  • Paavan Nanda: The Entrepreneur Revolutionizing India’s Gaming Landscape

    Paavan Nanda is a name that has become synonymous with innovation and strategic thinking in India’s fast-paced startup ecosystem. As the co-founder and CEO of WinZO, Nanda has redefined how millions of Indians experience gaming and entertainment. From creating Asia’s largest backpacker hostel chain to building a thriving social gaming platform, his entrepreneurial journey is both inspiring and transformative. 

    Through his ventures, Nanda has not only disrupted industries but also contributed significantly to the growth of India’s digital economy. His ability to identify opportunities, embrace challenges, and execute visionary ideas has earned him a place among India’s top entrepreneurs.

    In this StartupTalky article, we will explore Paavan Nanda’s success story, including his early life, childhood, personal life, education, awards, philanthropy, and more.

    Paavan Nanda – Biography

    Full Name Paavan Nanda
    Birthplace India
    Nationality Indian
    Education Bachelor’s in Engineering from Netaji Subhas Institute of Technology,
    MBA from Indian Institute of Management (IIM) Calcutta
    Occupation Entrepreneur, Angel Investor
    Known For Co-founder of WinZO,
    Co-founder of Zostel and ZO Rooms
    Other Titles Innovator, Visionary
    Philanthropic Focus Education, Entrepreneurship Development
    Hobbies Traveling, Gaming, Reading

    Paavan Nanda – Early Life and Education
    Paavan Nanda – Personal Life
    Paavan Nanda – Winzo
    Paavan Nanda – Zostel and ZO Rooms
    Paavan Nanda – Leadership and Vision
    Paavan Nanda – Philanthropy and Social Impact
    Paavan Nanda – Awards and Recognitions
    Paavan Nanda – Facts
    Paavan Nanda – Vision for the Future

    Paavan Nanda – Early Life and Education

    Paavan Nanda was born in India and demonstrated an early interest in technology, problem-solving, and innovation. His academic background reflects his sharp intellect and desire to make a difference.

    He has an engineering degree that helped him to understand technology and systems. Then he did an MBA from the Indian Institute of Management, Calcutta. The combination of technical and business knowledge was very effective in enabling him to excel as an entrepreneur.

    Paavan Nanda – Personal Life

    Paavan Nanda leads a relatively low-profile personal life. When not immersed in business, he enjoys traveling, gaming, and exploring new cultures. He often attributes his creative ideas to experiences gained during his travels.

    Nanda is also active on social media, sharing insights on entrepreneurship, technology, and gaming trends.

    Paavan Nanda – Winzo

    The Idea

    Paavan Nanda founded WinZO with Saumya Singh Rathore in 2018, identifying an exciting opportunity within the Indian gaming market. Worldwide, the gaming industry was witnessing phenomenal growth; however, the Indian gaming market lacked a local platform for such a huge audience. Paavan Nanda visualized vernacular gaming to reach users with entertainment in their mother tongue.

    WinZO was built to bridge this gap, offering a range of games, entertainment content, and social features in 12+ Indian languages.

    Early Development

    From the start, WinZO was designed to be user-centric. Nanda and his team have focused on user experience, security payment systems, and content personalization. The reason why the platform has become a success is that it connects people from all walks of life and makes gaming available to all.

    Rapid Growth and Achievements

    WinZO picked up pace, and millions of users joined the platform. In 2021, the company raised $65 million in a Series C funding round, bringing global investors on board, including Griffin Gaming Partners and Kalaari Capital.

    WinZO today stands at a valuation of more than $360 million and is considered one of India’s leading social gaming platforms.

    Winzo Financials FY23
    WinZO Financials FY23

    WinZO’s operating revenue grew by 188% from INR 234 crore in 2022 to INR 674 crore in 2023. Total expenses increased by 50%, from INR 375 crore to INR 564 crore. The company turned profitable, shifting from a loss of INR 130 crore in 2022 to a profit of INR 126 crore in 2023.

    WinZO: Revolutionizing Social Gaming with Innovation and Growth | Games | WinZo App
    WinZo Games, a vernacular gaming platform was launched in 2018. Read more about WinZO Games, Winzo app, its founder, business model, growth, funding, and future plans.
    StartupTalkyRishabh Rathi

    Paavan Nanda – Zostel and ZO Rooms

    Before WinZO, Paavan Nanda built Zostel-the Asia’s largest backpacker hostel chain. Started in 2013, Zostel gave budget travel to India a brand-new avatar for the first time as affordable and community-focused stays for young travelers.

    After establishing the success of Zostel, Paavan Nanda went on to co-found the budget hotel aggregator ZO Rooms backed by Tiger Global. Although ZO Rooms faced challenges due to market competition, it demonstrated Nanda’s ability to create innovative business models.

    Zostel – Business Model, Revenue Model, Funding, Competitors and more
    Zostel is a hostel startup for Budget travelers that offers accommodations at affordable prices. Lets look at its business model and how it makes money.
    StartupTalkyAnamika Mahapatra

    Paavan Nanda – Leadership and Vision

    As the CEO of WinZO, Nanda leads with a user-first approach, emphasizing innovation, scalability, and sustainability. He would like WinZO to be a platform that empowers the creator, engages the user, and fosters community over and above gaming.

    So far, Nanda’s strategic decision making-from partnering with the leading game developers to introducing gamified learning experiences positioned WinZO as a trailblazer in India’s gaming industry.

    WinZo Business Model | How Winzo Makes Money
    Discover how WinZo’s business model works and learn the different ways it generates revenue in the competitive gaming industry.
    StartupTalkyNitin Konde

    Paavan Nanda – Philanthropy and Social Impact

    Paavan Nanda is deeply committed to giving back to society. Through his philanthropic initiatives, he supports:

    • Education: Scholarship and programs for underprivileged students for quality education.
    • Entrepreneurship Development: Mentorship programs and seed capital for new entrepreneurs, especially in underserved communities. Nanda believes that technology and education are catalysts for change, as reflected by his efforts.

    Paavan Nanda – Awards and Recognitions

    The wide-ranging acclaim of Paavan Nanda lies in his entrepreneurship and gaming work: 

    • He is recognized on the Forbes India 30 Under 30 (2016) for changing the hospitality and gaming landscape.
    • Economic Times Start-Up Awards (2021): WinZO was recognized for innovation in the gaming space.
    • Featured in YourStory’s 50 Disruptive Startups (2020) as a game-changer in digital entertainment.

    Paavan Nanda – Facts

    • WinZO’s Language Diversity: The platform offers games in over 12 Indian languages.
    • Zostel’s Milestone: Zostel hosts have welcomed millions of travelers across India.
    • Angel Investor: Nanda has invested in startups across the tech, media, and food sectors.
    • Innovative Partnerships: WinZO collaborates with gaming studios worldwide to deliver diverse content.

    Paavan Nanda – Vision for the Future

    Nanda’s journey is far from over. His vision for WinZO includes:

    • Expanding into international markets.
    • Incorporating blockchain technology to enhance gaming transparency.
    • Promoting gamified education as a tool for skill development.
    • Through his ventures, Paavan Nanda aims to continue driving India’s digital revolution, creating platforms that entertain, educate, and inspire.

    Conclusion

    Paavan Nanda exemplifies the spirit of modern entrepreneurship. From reimagining budget travel with Zostel to transforming gaming with WinZO, his journey reflects innovation, resilience, and a deep understanding of market needs.

    His contributions to the Indian startup ecosystem have been through job creation but also in terms of giving a million-plus user base an entertaining experience localized in their space. As Nanda continues innovating, he will only impact more technology and society, setting in place his own legacy as one of India’s most visionary entrepreneurs.

    FAQs

    Who is Paavan Nanda?

    Paavan Nanda is an Indian entrepreneur best known as the co-founder of WinZO Games, a leading gaming platform in India. Before WinZO, he co-founded Zostel, a popular backpacker hostel chain in India.

    What is Paavan Nanda education?

    Paavan Nanda completed his undergraduate degree from Netaji Subhas Institute of Technology and later pursued an MBA from IIM Calcutta.

    What is WinZo?

    WinZO is a social gaming platform where users can play games and win money.

  • Top 19 Delhi Based Startups | List of Successful Startups in Delhi

    Delhi is making great strides in its journey to become the hottest startup destination in India with more than 1500 startups. The list given below discusses some of the most successful startups in Delhi that are in the process of leaving a lasting impact.

    Before proceeding, if you know about any other startup in Delhi that can or is making a difference, please let us know in the comments below. We would love to cover them in this post.

    You can also go through the list of startups in Lucknow, Gurgaon, and Goa.

    Also read – Funding & Investors for your startup.

    List of Startups in Delhi

    1. Zomato
    2. Inshorts
    3. Snapdeal
    4. MobiKwik
    5. Green Cure Wellness
    6. Hike
    7. Collegedunia
    8. Zostel
    9. GoldSeat
    10. Chaayos
    11. Revfin
    12. Dogspot
    13. TrulyMadly
    14. Flyrobe
    15. 3Hcare
    16. Ikka Dukka
    17. Imperial Knots
    18. Wingify
    19. LimeTray

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    Startups in Delhi

    Zomato

    Founders: Deepinder Goyal, Pankaj Chaddah, and Gaurav Gupta
    Founded in: 2008
    Industry: Food Delivery

    Zomato - Startups in Delhi
    Zomato – Startups in Delhi

    Zomato was initially launched as Foodiebay, an online marketplace to search for and review restaurants. As of now, Zomato is the biggest food delivery business in India and is counted among the best organizations across the globe in this domain. If you’re a hardcore foodie, chances are you would have already used Zomato’s services. Zomato is operational in over 20 countries and is adding new destinations to its list with passing time. It has also ventured into events and grocery sourcing for restaurants. With over millions of dollars in funding, the company stood at a valuation of approximately $3.6 billion in 2019 as per HSBC.

    Zomato (Foodiebay) was founded by Pankaj Chaddah, Gaurav Gupta, and Deepinder Goyal in 2008. Deepinder came up with the idea of Foodie bay seeing his colleagues consistently ask for paper menu leaflets of different restaurants for ordering food. The solution was an app which digitized these paper menus and leaflets, making it easier to browse through the menus of different restaurants from the comfort of one’s phone.

    Inshorts

    Founders: Azhar Iqubal, Anunay Arunav, and Deepit Puryakshatha
    Founded in: 2013
    Industry: Media

    Inshorts - Top Startups in Delhi
    Inshorts – Top Startups in Delhi

    Inshorts aggregates trending news from different sites such as the Economic Times, TOI, The Hindu, etc. into crisp 60-words pieces for readers who can’t spare time for detailed news content. Inshorts also provides personalized news based on an individual’s preferences. Its AI engine intuitively understands what you like reading and delivers more of that in a single feed. Inshorts, in short (pun intended), is the perfect solution for a quick dose of the events happening around you. It has received over $20 million in funding from Sachin and Binny Bansal, the founders of Flipkart.

    The trio of Azhar Iqubal, Anunay Arunav, and Deepit Puryakshatha started Inshorts in 2013. Anunay did his M.Tech from IIT Delhi and Deepit did his Master’s from IIT Kharagpur. Azhar, on the other hand, is an IIT Delhi dropout.

    How To Start A Media Company In India
    Do you want to start a media company in India? You need to be aware of the legal procedure and some registration-related requirements that are covered in this StartupTalky post.
    StartupTalkyYash Gupta

    Snapdeal

    Founder: Kunal Bahl
    Founded in: 2010
    Industry: Ecommerce

    Snapedeal - Top Startups in Delhi
    Snapedeal – Top Startups in Delhi

    Snapedeal is one of the biggest startups to have emerged out of Delhi. It was founded by Kunal Bahl in 2010 as a platform for daily deals and coupons. After tasting success, the founder thought of expanding the company further as an online e-commerce store in 2011. Snapdeal received its first round funding in 2011; it was $12 million from Nexus Venture Partners and Indo-US Venture Partners. The company is facing a downfall in sales at the moment. However, it is still counted among the top 10 e-commerce ventures in India.

    MobiKwik

    Founders: Bipin Preet Singh and Upasana Taku
    Founded in: 2009
    Industry: Fintech

    MobiKwik - Top Startups in Delhi
    MobiKwik – Top Startups in Delhi

    MobiKwik is one of the most prominent Indian SaaS startups. MobiKwik is a virtual mobile wallet usable at more than 2,50,000 online and offline avenues. It was founded by the husband-wife duo of Bipin Preet Singh and Upasana Taku. MobiKwik sees an average transaction size of INR 700. The company claims to be growing at a steady rate of 20 percent MoM, which is a tad lower than the growth rate observed during demonetization. The company was bootstrapped with Bipin investing $250,000 of his own. Since then, MobiKwik has received a total of over $115 million through 6 rounds of funding.

    Green Cure Wellness

    Founder: Sanchit Garg
    Founded in: 2015
    Industry: Herbal/Ayurveda

    Green Cure - Top Startups in Delhi
    Green Cure – Top Startups in Delhi

    Green Cure Wellness manufactures herbal personal care items and health care products of international quality. Green Cure has a team of scientists in Germany who develop high-quality formulations which are as per European norms. It has another team of Ayurvedic specialists in India who make sure that these products are in line with Indian needs.

    Green Cure Wellness is a bootstrapped startup. The raw materials are sourced from Germany and Australia from companies with proprietary technology. These ingredients also have international certifications like NPA, Cosmos Ecocert, ISO, WHO-GMP, Kosher, NOP, and HACCP.

    Hike

    Founder: Kevin Mittal
    Founded in: 2008
    Industry: Social Media

    Hike - Top Startups in Delhi
    Hike – Top Startups in Delhi

    Hike is a messaging app-cum-social network. Hike messenger was one of the top social media startups in India. The company was the idea of Kavin Mittal. Kavin Mittal did his master’s from Imperial College, London. He is the son of Bharti Enterprises’ founder and chairman, Sunil Mittal. Hike raised its first funding of $7 million from Bharti and Softbank. It received another $14 million from the same investors. Since then, Hike has raised more than $200 million, mainly from Tiger Global, Tencent, and Foxconn.

    Collegedunia

    Founder: Sahil Chalana
    Founded in: 2014
    Industry: Edtech

    Collegedunia - Top Startups in Delhi
    Collegedunia – Top Startups in Delhi

    Collegedunia is a college search engine helping students find the perfect institution. Collegedunia gathers and maintains information on higher education both in India and abroad. It claims to feature more than 20,000 colleges, institutes, and universities, along with data on one million fees structures on its platform.

    Sahil Chalana started Collegedunia in 2014. Sahil graduated from BITS Pilani. He bootsrapped Collegedunia as a lead generation platform for educational institutes. He then received a funding of INR 1 crore from Umang Kumar.

    Zostel

    Founders: Akhil Malik, Dharmveer Singh Chouhan, Paavan Nanda, Varun Tiwari, Chethan Singh Chouhan, and Abhishek Bhutra
    Founded in: 2013
    Industry: Travel

    Zostel - Top Startups in Delhi
    Zostel – Top Startups in Delhi

    Zostel is a Delhi-based startup and India’s first chain of backpackers’ hostels offering secure, hygienic, and pocket-friendly accommodation. It’s the go-to place for wanderlust backpackers on a pocket-friendly budget. Since its inception in 2013, Zostel has expanded its network to cover 20+ Indian cities.

    GoldSeat

    Founders: Gaurav Kapahi and Nishchal Khetarpal
    Founded in: 2016
    Industry: Tech-Entertainment

    GoldSeat - Top Startups in Delhi
    GoldSeat – Top Startups in Delhi

    GoldSeat provides bus travel facilities and WiFi-connectivity on buses. It offers two great ways to access seamless offline entertainment. First, it offers free WiFi to passengers inside the bus. The second way is through a wide collection of movies that travellers can access either on the GoldSeat screens installed in the bus, or on one’s mobile by downloading the GoldSeat app.

    In June 2018, GoldSeat raised $ 3 million in funding. GoldSeat recently collaborated with Railyatri.in for the latter’s ‘Intercity Smart Buses’. It currently offers services to private players across Northern and Western regions, including Lucknow, Ahmedabad, Delhi, and cities in Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Gujarat, Punjab, Rajasthan, and Karnataka.

    Chaayos

    Founders: Nitin Saluja and Raghav Varma
    Founded in: 2012
    Industry: Food delivery

    Chaayos - Top Startups in Delhi
    Chaayos – Top Startups in Delhi

    Chaayos is an online tea delivery and cafe chain launched out of Delhi. The company focuses on providing authentic beverages at economical prices. Chaayos is for all those ‘Chaifreaks’ (not forgetting the coffee lovers) wanting the best sip out of their cup.

    With Starbucks and Cafe Coffee Day seen as “ameer laundo ki jagah” (Hindi phrase for “place for the rich”), Chaayos ensures that the Indian middle-class population doesn’t feel left out. The company has established its chain of cafes in 6 Indian cities since starting out in 2012.  

    Revfin

    Founder: Sameer Aggarwal
    Founded in: 2018
    Industry: Fintech

    Revfin - Top Startups in Delhi
    Revfin – Top Startups in Delhi

    Revfin is a financial technology (Fintech) startup. Revfin is building the world’s most advanced digital lending platform. The platform will be used to underwrite and manage consumer loans to finance clean technologies through its NBFC.

    Revfin provides two types of loan:
    1. Regular personal loan: This loan can be taken for a variety of purposes and is paid back in equal monthly installments.
    2. RevLoan: An unsecured credit limit that you can use as and when needed. You can withdraw any amount in denominations of  INR 1000 up to your credit limit.

    Investors in Revfin are Harash Jain (CEO, Litejoy International and UK-based businessperson), Anil K Goyal (Founder, Anil K Goyal and Associates), Anil Lanba (Senior Technology Executive, EVP Pyramid Consulting), and Krishan B Singh (Investor based in New York).

    Dogspot

    Founder: Rana Atheya
    Founded in: 2007
    Industry: Ecommerce

    Dogspot | Top startups in Delhi
    Dogspot | Top startups in Delhi

    Online food delivery for people sounds too mainstream, right? Dogspot has disrupted this segment by making it possible for dog owners to have food for their pets ordered online. Dogspot is India’s largest online store for pet supplies. This Delhi-based startup has redefined pet care, making pet ownership as easy as cracking an egg.

    Funded by business tycoons such as Ratan Tata and Ronnie Screwvala, the company has made progress by leaps and bounds.

    TrulyMadly

    Founders: Sachin Bhatia, Hitesh Dhingra, and Rahul Kumar
    Founded in: 2013
    Industry: Dating App

    TrulyMadly | Top startups in Delhi
    TrulyMadly | Top startups in Delhi

    The Indian version of Tinder, Trulymadly is considered the best dating and matchmaking app in India. Unlike Tinder and other dating apps where the results are overwhelmed with hundreds of useless matches, TrulyMadly showcases only up to 10 results. The app requires you to fill up your profile through a series of questionnaires and based on the results, it links you to the ideal partner.

    Flyrobe

    Founders: Shreya Mishra, Pranay Surana, and Tushar Saxena
    Founded in: 2015
    Industry: Fashion

    Flyrobe | Top startups in Delhi
    Flyrobe | Top startups in Delhi

    The startup wanted to do something different. It wanted to explore a niche that wasn’t over-exploited. Flyrobe chose to offer rental of clothes for weddings and other occasions. It has an excellent range on offer, one that’s full of high-quality, reliable material. Flyrobe has also partnered with the big labels like Ritu Kumar, Masaba Gupta, and others. It has achieved a milestone of more than 5,00,000 app downloads.

    3Hcare

    Founders: Ruchi Gupta, Dr. Ravinder Pal Singh Malhotra, and Dr. Gurdeep Singh Ratra
    Founded in: 2016
    Industry: Healthcare

    3Hcare | Top startups in Delhi
    3Hcare | Top startups in Delhi

    3Hcare is an online marketplace for healthcare services. It provides detailed information on the healthcare services available PAN India. User can simply log on to 3Hcare’s website and find diagnostics clinics and hospitals.

    3Hcare provides two services:
    Diagnostics – Over 1500 labs and test centers (NABL accredited) from 50+ locations throughout India.
    Plan My Surgery – An innovation by which patients can plan their surgeries with the best of surgeons at viable costs and schedule. Moreover, a price comparison feature is available, and the patient is also able to seek time- availability and appointment with the best-in-class doctors and hospitals.

    3Hcare received an angel funding of INR 65 lakhs within 11 months of its inception. The funds were used to develop the IT infrastructure and enhance other services. 3Hcare also raised $1 million in its second round of funding.

    Ikka Dukka

    Founders: Enda Noone and Nilisha Kholi
    Industry: Handicrafts

    IkkaDukka | Top startups in Delhi
    IkkaDukka | Top startups in Delhi

    The duo started the company in Delhi with a goal to curate a brand of artistic handicraft to prevent this cultural and heritage skill from fading into oblivion. The two took a sabbatical from work and began working on Ikka Dukka in 2013. Launched in 2014, Ikka Dukka sells exquisite, affordable collection of jewellery starting from INR 1,800. Ikka Dukka also sells home décor and bags. The Delhi startup is up-scaling the popularity of handicrafts.

    Imperial Knots

    Founder: Karan Kholi
    Industry: Textile

    Imperia Knots | Top startups in Delhi
    Imperia Knots | Top startups in Delhi

    Imperial Knots is an e-commerce website selling rugs and carpets. All Imperial Knots products are representative of artistic designs, aesthetic colors, and comfort while offering high standard floor coverings for your homes. The brand offers over 5,000 exclusive designs and is relentlessly creating new designs in line with changing market trends. Its flat weave rugs and hand-tufted modern carpets have attained immense popularity in recent years. The company has tie-ups with various websites such as Pepperfry, Amazon, Urban Ladder, and Ikka Dukka for showcasing its products.

    Wingify

    Founder: Paras Chopra
    Founded in: 2010
    Industry: Software Development

    Wingify | Top startups in Delhi
    Wingify | Top startups in Delhi

    Wingify provides a ‘visual website optimizer’ to assist marketing professionals and increase sales and conversions on their websites using techniques such as A/B testing. Wingify is offering a multivariate testing tool to deal with behavioural targeting, tracking visitors, usability testing, etc.

    LimeTray

    Founder: Akhilesh Bali and Piyush Jain
    Founded in: 2013
    Industry: Information Technology & Services

    Limetray | Top startups in Delhi
    Limetray | Top startups in Delhi

    LimeTray is complete restaurant management platform. It a one-stop shop for everything a restaurant needs to grow, right from the technology to data-driven consulting services. LimeTray makes it easier for restaurants to tap into the customer base that lives online. The startup’s founding team consists of ISB and NSIT alumni with strong-domain knowledge; they built one of the largest online food-ordering portals prior to this venture.

    So this was our list of some successful startups in Delhi. Do share it on your social media profiles and tag us and your favorite startup from this list!

    FAQs

    What are the most successful startups in Delhi?

    Most successful startups in Delhi are listed below:

    • Zomato
    • Inshorts
    • Snapdeal
    • MobiKwik
    • Green Cure Wellness
    • Hike
    • Collegedunia
    • Zostel
    • GoldSeat
    • Chaayos
    • Revfin
    • Dogspot
    • TrulyMadly
    • Flyrobe
    • 3Hcare
    • Ikka Dukka
    • Imperial Knots
    • Wingify
    • LimeTray

    How many startups are there in Delhi?

    There are more than 1500 Startups in Delhi.

    What are the best startups in India?

    Top startups in India are:

    • AirBnB
    • Dunzo
    • Udaan
    • Byju’s
    • Zest Money
    • Cure. Fit
    • Razorpay
    • PharmEasy
    • Nykaa

    What is the best business to start in Delhi?

    Some of the best business to start in Delhi are:

    • Printing Business
    • E- commerce Business
    • Website designing
    • Interior Designing
    • Tutoring

    Which are Delhi based startups that became Unicorn?

    Delhi based startup that joined Unicorn club are:

    • Lenskart
    • BharatPe
    • GlobalBees

  • Zostel – The one with the Flashback of Hostel memories

    Do you enjoy traveling? Is your top priority safety and sanitation? You’ve found your ideal hotel, but is it out of your budget? In this scenario, you might consider staying in a Dharamshala, but their surroundings aren’t appealing. They do have a lot of rules so you may be wondering if it’s worth it to spend the money.

    In light of this predicament, the concept of a “hostel for backpackers” was established. It’s similar to what we have currently in terms of hostels (assuming you are still in college and have come from outstation). There are shared rooms, a common dining room, and a variety of enjoyable activities and games with no or little constraints. In a nutshell, a youthful euphoria has persisted.

    Solo travel and backpacking have become popular in this new era. We can now quickly learn about new places and obtain useful information by reading blogs or social media updates.

    A startup called Zostel has a similar concept. It is the first hostel chain-based startup in India.

    About Zostel
    Zostel – Latest News
    Zostel – History
    Zostel – Mission and Vision
    Zostel – Tagline and Logo
    Zostel – Products and Services
    Zostel – Business Model
    Zostel – Revenue Model
    Zostel – Challenges
    Zostel – Funding
    Zostel – What makes it unique?
    Zostel – Competitors
    FAQ

    About Zostel

    Zostel is like a hostel that provides a home environment with all of the necessary conveniences at an affordable price. Budget travelers, particularly those aged 18 to 40, can find safe, hygienic, and affordable lodging at Zostel.

    They have air-conditioned dorms, both mixed and female-only, where rooms may be booked at a competitive price of 500 per night. It has an actual house with beds, a shared space with gaming, a spot for campfires, open mics, and other activities where they may socialize.

    Every Zostel is unique since local aspects are taken into consideration when constructing the ideal city-centric Zostel. The founders have considered the importance of safety and comfort while attempting to maintain the vibe joyful and cool. Zostel seeks to deliver great enjoyment to travelers rather than just a place to sleep.

    Startup Name Zostel Hospitality Pvt. Ltd
    Headquarter Zostel HQ, 4th Floor, The Circle Work, Huda City
    Centre, Gurgaon, India
    Operating Status Active
    IPO Status Private
    Sector Hostel, Tourism, Backpacker Tourism
    Founders Akhil Malik, Dharmveer Singh Chouhan, Paavan Nanda, Tarun Tiwari, Chetan Singh Chauhan, Siddharth Janghu, Abhishek Bhutra
    Founded 2013
    Total Funding $1 Million
    Last Funding Type Venture – Series Unknown
    Key People Dharamveer Singh Chouhan (Chief Executive Officer), Aviral Gupta (Chief Strategy Officer), Chetan Singh Chahuhan (Chief Operating Officer)
    Key Products Zostel Hostels, Zostel Homes, Zostel Escape, Trusted by Zostel
    Website zostel.com

    Zostel – Latest News

    08 March 2021

    Zostel, a hostel startup, alleges it has triumphed over OYO, however, the hospitality unicorn has denied such allegations, claiming that indeed Arbitration Tribunal has given Zostel no particular settlement in place of acquiring a stake in OYO.

    3 October 2020

    Zostel Hospitality Pvt. Ltd, which runs two franchises: Zo Rooms, an affordable hotel business, and Zostel, a travelers’ hostel network, has appealed to its clients to acquire INR 10 crore in fundraising at a pre-money worth of INR 75 crore. The startup has asked its clientele to become angel investors and contribute ranging from INR 5 lakh and INR 1 crore to the Zostel hostel brand.

    10 August 2020

    Zostel is investing heavily in local tourism, with plans to establish 500 more properties in the next two years. Zostel presently operates 60 hostels and guesthouses across the globe. The firm is soliciting funds from the market for Rs 10 crore.

    Zostel – History

    Whenever people from engineering and management backgrounds collaborate on any project, it leads to the greatest innovation of all time. Zostel, a hostel for backpackers was a huge success since most of us were waiting for this idea to be explored.

    We’ve all seen the film “Queen” and agree that something similar should happen in our country. So, for you adventurous vacationers, Zostel provides the same thrilling experience.

    On the occasion of Independence day 2013, Dharamveer Chauhan and his six buddies founded this exciting startup called “Zostel”. Their goal is to assist travelers to enjoy exploring Indian towns. It wasn’t just for backpackers, but also professionals and visitors. Seven pals came up with the idea of combining hostels and today’s Gen Z.

    Zostel created homes with facilities and afterward equipped them to offer an atmosphere they have never been a part of with a limited budget of Rs 50 lakhs, participating in several B-school contests, and generating revenue through bootstrapping. Jodhpur developed the 1st Zostel, accompanied by Jaipur.

    This company, which began with the hostel concept, is no longer limited to that notion but has evolved into a trailblazing travel solution company. It now operates in 37 cities across India and China, with over 200 hostels.

    Zostel – Mission and Vision

    The firm was established to encourage people to travel as a part of their lifestyle. They intend to contribute to the promotion of travel by building a reliable, enjoyable image and involving local people in the effort.

    They strive for a basic, adaptable hotel and hostel brand with a great understanding of visitors, the latest trends, and the required confidence, that has garnered them an unconventional status in the travel sector.

    With a simple approach, they hope to ensure that travelers simply pay for the features that they genuinely require and desire. They provide their clients with budget-friendly lodging in the heart of the city, with a strong emphasis on rates and comfort.

    Zostel Logo
    Zostel Logo

    “Live it Now”, as the tagline suggests, Zostel is for intrepid adventurers. Throughout your stay, you will meet people who have had interesting and intriguing travel experiences.

    During your trips, you seek peace. You get everything in one place, including well-furnished dorms, tasty foodstuffs, a private kitchen for cooking enthusiasts, game spaces, WIFI connectivity, and absolute coziness.

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    Zostel – Products

    Allow me to describe their products to you:

    Zostel Hostel

    Zostel Hostel is the company’s main product. It may be found in most tourist destinations. Initially, the majority of Zostel’s properties were owned by the company. Then it devised a franchising strategy.

    Zostel X

    It is a service that allows you to stay in a private home. Instead of being in the heart of the city, they are found on the outskirts. It is mostly suitable for groups of visitors or families. It is a privately owned property that is rented out.

    Zostel Escape

    It was created to provide guests with authentic local services. Only locals provide the services, allowing travelers to go beyond the typical tourist attractions.

    Zozo Bus: Zostel provides a Zozo bus service, which allows travelers to travel on a budget. It’s a 12- or 13-seater bus that brings you to pre-determined destinations.

    OTA (Trusted by Zostel): As a brand, Zostel has consistently provided excellent service to its visitors, making it a reliable location to stay. Inquiries are coming in from places where Zostel does not have a hostel. In situations like these, Zostel has partnerships with local hostels, allowing it to provide OTA services.

    Zo rooms: Zo Rooms is a Zostel subsidiary. Its like OYO, a hotel aggregator.

    Zostel – Business Model

    You may have heard about Zostel’s services, but its primary business model is franchise-based. Zostel came up with a unique project to assist and inspire imaginative minds who aspire to be entrepreneurs and escape from the chains of mundane existence.

    Zostel will guide you in the process of opening your own Zostel at a place of your preference through this project. The choice of location and the ideal property to operate is based on your skills, belief, and viability. Zostel will help you with the setup, branding, marketing, and operations aspects of your franchise.

    Based on the value of the building, the location, and your accord with the landlord, your Zostel franchise might cost roughly 30 lakh rupees. It will not be funded by Zostel but the periodic monetary incentive will be provided based on the performance of your Zostel compared to others.

    Traveling is a kind of relaxation for all of us. But the fear of staying in filthy rooms makes our trip a bit less fun. Considering that, Zostel wanted to change the way we Indians have traveled and it has made its goal to deliver the best services throughout our staycation. They’ve done so by forming a powerful network of backpackers and entrepreneurs capable of ushering in a change.

    In 2019, Zostel offered OTA, which allows them to earn a fee of 10% to 15% on each transaction. Both Zo rooms and Zostel work on a commission basis.

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    Zostel – Revenue Model

    Franchise Fees

    This is usually paid in one single payment after the franchise contract is signed. INR 2,00,000, including taxes, is charged by Zostel. Their commissions and monthly fees begin once the business is fully operational.

    Depending on the operational ranking, they charge a flexible fee of 18-24 percent of the lodging income. They also don’t charge fees on meal and refreshment revenues or any other supplementary income of the business.

    Royalty Fees

    In certain franchises, the franchisor offers a franchisee special power to sell the firm’s merchandise locally in exchange for royalties. These royalties are usually calculated annually or quarterly as a proportion of the franchisee’s gross sales revenue. This recurring fee allows Zostel to offset the expenses of continuous benefits offered to its franchisees while still generating a return from its operations.

    Site Assistance Fees

    Site assistance fees, also known as a set-up charges, are charged to the franchisee by the franchisor, Zostel, for assistance in locating and establishing a crucial site. They provide some support in venue selection and formation, but the franchisee is normally in charge of the ultimate choice, which is up to the permission of the parent firm. They opt to reimburse these expenses as part of the franchise fee.

    Ongoing Services

    Zostel offers assistance to its franchisees, such as staffing a service center for scheduling bookings and building and operating an app that can be utilized to improve efficiency at all franchisees. For them, it serves as a supplementary income source.

    Marketing

    To reach a wider audience and assist each franchisee in becoming more profitable, Zostel invests in domestic or foreign promotional activities. As a result, profitability is increased and more funds are allocated to royalties.

    Zostel – Challenges

    Controversial journey

    When Zostel introduced Zo Rooms, hotel aggregator company OYO rooms filed a lawsuit accusing Zostel of deception i.e. data theft. OYO took the case to court, which was soon resolved.

    Following that, OYO rooms were in talks to acquire Zo rooms. OYO spent a long period looking into the documents of Zo rooms for acquisition purposes but ultimately opted not to buy them.

    In return, Zo rooms filed a data theft lawsuit against OYO rooms, believing that OYO may utilize their information in the future. This acquisition battle went for 3 years and eventually, Zo rooms claimed victory over that.

    Vulnerable industry

    Zostel is entirely devoted to tourism. Micro and macro incidents have the greatest impact on the tourism business. Take, for example, the pandemic that wreaked havoc on the tourism economy. As a result, Zostel’s vulnerability will always be a challenge.

    The mentality of people

    Since Zostel provides cheap accommodation, people might think their services might be poor as well. The traditional concept of hostels being mostly for students hasn’t changed yet so it might take a while for people to get acquainted with this new idea.

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    Zostel – Funding

    Zostel received $1 million in funding in 2014. Recently, funds were raised on 25th July 2018 in a Venture series unknown round. Zostel’s recent investors are Orios Venture Partners and Presha Paragraph.

    Date Stage Amount Lead Investor
    May 13, 2014 Venture Round $1M Presha Pargash
    July 25, 2018 Venture Round Orios Venture Partners

    Zostel – What makes it unique?

    The services offered by Zostel are similar to those offered by hotels, yet the experience is unique. In hotels, you may not have the opportunity to interact with other visitors, but at Zostel, rooms are shared, so you may connect with your roomies and learn more about their adventure.

    The majority of Zostel’s are set up in natural settings. In this sort of environment, tourists feel more at ease and may openly converse.

    So, the ultimate goal is to connect more individuals and provide them a memorable experience while staying within their comfort bubble.

    Zostel – Competitors

    Traditional low-cost hotels have long been a threat to Zostel, but the number of local hostels and homestays is fast growing. In India, there are over ten hostel chains with a national presence, posing a direct threat to Zostel.

    The top 2 competitors of Zostel are:

    Backpacker Panda

    Backpacker Panda is a young, energetic firm with a vision of becoming a data-driven firm and revolutionizing the way Indians travel. The hostel brand has eight zones all over India, and its mantra of hygiene is often kept in mind.

    Roadhouse hostel

    Ambarish Raghuvanshi established it in November 2014. It operates in India from five different locations.

    Final thoughts

    In India, Zostel pioneered the backpacker hostel lifestyle. Zostel became a popular alternative for backpackers due to its unique strategy and high-quality services. Zostel’s services and experiences are unrivaled in their magnificent settings. As a result, they are a well-known hostel chain among travelers in India.

    FAQ

    What is the concept of Zostel?

    The concept of a Zostel is that its is a hostel for backpackers. In Zostel there are shared rooms a common dining room, and a variety of enjoyable activities.

    Who is the founder of Zostel?

    Akhil Malik, Dharmveer Singh Chouhan, Paavan Nanda, Tarun Tiwari, Chetan Singh Chauhan, Siddharth Janghu, Abhishek Bhutra are the founders of Zostel.

    Did Oyo acquire Zostel?

    No, Oyo was in talks to acquire Zostel but later opted not to acquire them.