First backpacker Hostel ‘Zostel’ in India funded by angel investors like Presha Paragash. Zostel provides safe and happening hostel provider right in the heart of the city at affordable price.
Zostel provides accommodation facility for people who wish to meet new persons and exchange their travel stories. To facilitate the company has started Zostel Entrepreneurship Development Programme (EDP). Under this programme the company’s one of its kind initiative helps and motive the free and ambitious soul. The souls trapped in various other sphere of work life who like to break free and fly away doing what they love. Zostel will provide seed incentive upto Rs. 10 lakhs. The company will help in every possible way to be an entrepreneur and ready to take calculated risk.
The company will counsel the applicant before registration process, all the doubts are cleared from the minds of the applicant. Zostel have the first step making more people to travel to change the way India is travelled.
Zostel has opened their services in cities like New Delhi, Goa, Varanasi, Vadodara, Agra, Jaipur, Jodhpur and Udaipur. Zostel like to tap the market where there is a severe shortage of 65,000 rooms for budget travellers and moreover there is no concept of backpacker’s hostels unlike in the west.
Zostel claims the business to be profitable as per bed/ night will generate average revenue of Rs 650 and average occupancy for last 8 months is 62% and to arrive into operational break even one should get average occupancy of 32%. There will be profit of Rs.5,790 per bed/month at operating margin of 48%.
The Jaipur based company was founded in August 2013 by Dharamveer Chauhan and others. Most of the founders are from Indian Institute of Management branches supported by graphic designer teams from various NIFT’s and IIT’s. Zostel received $1 million from Presha Paragash as venture capital in May 2014.