Lokal received Rs 120 Cr Series B funding from new and existing investors
Lokal, a hyperlocal social media platform, received Rs 120 crore in Series B funding from new backers Global Brain and Sony Innovation Fund, India Quotient, and other long-term investors.
The new funding has arrived after an 18-month pause. Twelve million dollars had reportedly been raised in a Series A round from Tencent.
According to a press release from the company, Lokal will use the proceeds to expand, introduce new product categories and capabilities, and strengthen its product and technology teams.
A $3 million investment was made by the five-year-old business from 3one4 Capital, Y Combinator, RB Investments, and SOMA Capital. Previously, in November 2019, it received a seed investment from early-stage VC firm India Quotient, which focuses on Bharat.
Lokal was established by Jani Pasha and Vipul Chaudhary in 2018 to deliver localized news to vernacular audiences. Users can use it to download videos, change their WhatsApp status, look up information on job exam preparation, and get commodity and real estate price updates.
Lokal’s Android app has received 2.7 million downloads since January 2023 and 13 million in the previous 12 months, according to data from Sensor Tower.
In order to produce original reporting on regional issues, Lokal has established a network of freelancers and stringers. For SMEs and brands aiming to reach tier II and III towns, it also provides content-led digital marketing solutions. Telangana, Andhra Pradesh, Maharashtra, and Gujarat are among the seven states where the company claims to operate in more than 180 districts.
Lokal is a five-year-old business, but it hasn’t yet reported a sizable revenue. According to the annual financial statement submitted to the RoC, it experienced a 3.4X growth in scale to Rs 8.42 crore in FY22 as opposed to Rs 2.46 crore in FY21. Losses for the business increased by over 6X to Rs 38.85 crore in FY22 from Rs 5.92 crore in FY21. It has not yet released its FY23 financial figures.
Other apps that compete indirectly with Lokal include Dailyhunt’s PublicVibe and InShort’s Public app.
