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Pod hotel startup NapTapGo has raised $500,000 in a pre-seed funding round led by T9L Qube, one of India’s more prominent venture studios, to bring Japan’s capsule hotel concept to the country’s budget hospitality market.
The startup will use the raised capital to support its expansion plans, including the installation of new pod hotels in high-traffic locations such as city centers near IT hubs and religious destinations.
It hopes to tap into India’s estimated $20 billion budget hotel segment, which is growing at a compound annual rate of 13-15%.
NapTapGo's offerings
Built around capsule-style accommodations, NapTapGo’s concept is designed for travelers seeking short but comfortable stays, with each pod offering essentials like a bed, ventilation, and security.
According to co-founders Nitin Malhotra and Himanshu Shukla, these pods target “solo travelers, working professionals, and frequent flyers aged 25 to 60 who seek convenient, affordable, and high-quality stays near IT hubs and religious locations.”
T9L Qube’s co-founders, Fahad Moti Khan and Gaurav Gaggar, said they were impressed by how NapTapGo aligns with shifts in budget travel. “We see pod hotels as a groundbreaking and unique development in the hospitality sector,” they noted.
“These accommodations are ideal for guests looking to rest for a few hours, offering an affordable and luxurious option, even for solo travelers. The growing demand for accommodations near religious sites is significant, and we believe that these pods will be a game changer in meeting the needs of religious travelers by providing clean, hygienic, and comfortable stays at an affordable price.”
Rising popularity of pod-style hotels
Japan-inspired capsule hotels have started to gain attention in India, where standard budget accommodations are often criticized for limited space and inconsistent cleanliness.
NapTapGo claims it addresses these issues with compact but functional pods equipped to “prioritize cleanliness and quality, providing exceptional customer experience,” according to the founders.
Notably, Indian billionaire and Mahindra Group Chairman Anand Mahindra recently lauded the concept on social media, calling it “pretty cool.”
Establishing over 80 pod locations
The startup said the new investment will support its plan to establish over 80 pod locations in the next five years, potentially yielding revenues of Rs 100 crore.
NapTapGo is adopting a “company-operated franchise” model, seeking partners with 3,000 to 5,000 square feet of commercial space in high-traffic city areas.
T9L Qube, meanwhile, will provide incubation support and mentorship, which typically includes strategy, branding, fundraising, and product development assistance.
"Our vision is to be the most preferred option in the affordable hotel segment by offering flexible stays and a superior customer experience," NapTapGo founders added.