GoStops is redefining budget travel by offering affordable, community-driven hostels for young travelers. Unlike traditional hotels, GoStops provides dorm-style accommodations with vibrant social spaces, designed to foster connections among travelers.
Business Model: Converting Hotels into Hostels
Instead of building new properties, GoStops takes over existing hotels with 20-50 rooms and converts them into hostels. The process includes installing dorm beds, lockers, and shared recreational areas to create a lively atmosphere tailored for backpackers, digital nomads, and budget-conscious travelers.
Expanding Across India
Since its founding in 2014 by Pallavi Agarwal and Pankaj Parwanda, GoStops has grown to over 30 locations, including Uttarakhand, Himachal Pradesh, Rajasthan, Uttar Pradesh, Karnataka, Tamil Nadu, and Kerala. The startup targets travelers aged 18-35, catering to leisure, business, and spiritual tourism.
Future Growth Plans
With fresh funding of ₹35 crore ($4.2 million) led by Blume Ventures, GoStops plans to expand to 100 locations and increase its capacity from 2,500 to 10,000 beds over the next two years. The company is focusing on key business hubs like Mumbai, Bangalore, Chennai, Kolkata, and Pune, with a goal of opening 30 new hostels in the next year.
Why GoStops Stands Out
GoStops is not just about providing accommodation—it’s about creating experiences. The brand integrates technology to streamline bookings, enhances community engagement through common areas and activities, and maintains cost efficiency while scaling rapidly.
A Growing Market
With rising demand for affordable stays among young travelers, nearly 70% of budget travelers now prefer hostels over hotels. GoStops aims to capitalize on this trend and expects to close FY25 with ₹40 crore in revenue.
Investor Confidence
Investors see GoStops as a category-defining brand. Blume Ventures’ partner Ashish Fafadia praised its ability to balance growth with smart asset management, while 1Crowd cofounder Anil Gudibande highlighted its potential to shape youth travel and lifestyle choices beyond just hospitality.
GoStops is set to revolutionize India’s hostel industry, making budget travel more accessible, social, and engaging for young explorers.
