Behind the Scenes: From Coding to Connecting Communities

Lokal was founded in June 2018 by Jani Pasha and Vipul Chaudhary. Both are alumni of the Indian Institute of Technology (IIT). Jani Pasha graduated from IIT Kharagpur in 2013. Before Lokal, he served as the Head of Product at Zoomo, a used car marketplace in India. Vipul Chaudhary, prior to co-founding Lokal, worked as a Senior Engineer at Qualcomm and is proficient in information retrieval, natural language processing, and machine learning. (Jani Pasha)

The idea for Lokal emerged from the founders’ observation of a significant gap in the availability of hyperlocal news and information in regional languages. Initially, they experimented with a news aggregator platform called The Soup, which presented news events in a timeline format. However, after realizing that this product did not meet the needs of their target audience, they conducted extensive user interviews. They discovered that residents of Tier II and III towns in India lacked access to timely local news and information in their native languages. (Vipul Chaudhary)

In February 2018, they started by creating a WhatsApp group to distribute local news sourced from a stringer in Kodad, a town in Telangana. The rapid growth and engagement within these groups highlighted the demand for hyperlocal content, leading to the development and release of the Lokal app in May 2018.

This transition from a simple WhatsApp group to a dedicated app marked the beginning of Lokal’s journey in providing localized news and services to non-English speaking users across India.

Market Matters: Lokal’s Big Bet on Small Markets

The hyperlocal services market has experienced significant growth in recent years, driven by the increasing demand for localized, on-demand services. In 2021, the global market was valued at approximately USD 1.5 trillion. Projections indicate that by 2031, this market will reach around USD 5.9 trillion, exhibiting a compound annual growth rate (CAGR) of 14.4% over the forecast period. (Allied Market Research)

This growth is largely attributed to the proliferation of smartphones and improved internet connectivity, which have facilitated the accessibility and convenience of hyperlocal services. Consumers increasingly prefer services that cater to their immediate geographic vicinity, such as food delivery, grocery shopping, and home utility services. The COVID-19 pandemic further accelerated this trend, as lockdowns and social distancing measures heightened the reliance on local service providers.

Regionally, North America dominated the hyperlocal services market, holding a significant share in 2023. This dominance is expected to continue, supported by the region’s technological advancements and high consumer demand for localized services. (Fortune Business Insights)

The hyperlocal services market is on a robust growth trajectory, fueled by technological advancements, changing consumer behaviors, and the increasing need for convenience. Businesses operating in this sector are poised to benefit from these trends, provided they can adapt to the evolving demands of the modern consumer.

Mission Possible: Lokal’s Vision to Bridge the Language Gap

Lokal’s mission is to bridge local communities and foster regional connectivity by providing a space where users can share their stories, connect with like-minded individuals, and support local businesses. The platform enables users to access hyperlocal information such as daily commodity prices, local jobs, real estate listings, matrimonial services, and local business advertisements, all in their regional languages. Lokal’s vision is to create a vibrant and connected hyperlocal community where individuals can engage, collaborate, and thrive in their regional language.

Problems They Solve

The platform addresses several key challenges faced by users in Tier II and III cities:

• Language Barriers: Many digital platforms primarily offer content in English, limiting access for non-English speakers. Lokal removes this barrier by providing content in regional languages, making information more accessible.
• Fragmented Local Information: Users often struggle to find consolidated local news, job listings, and classifieds. Lokal aggregates this information, offering a one-stop platform for all hyperlocal needs.
• Limited Digital Advertising Options for SMEs: Small and medium-sized enterprises (SMEs) in smaller towns often lack effective channels to reach their target audience. Lokal provides content-led digital marketing solutions, enabling businesses to advertise directly to local consumers.

Business Model

Lokal operates on a freemium business model. Users can access a wide range of services for free, including local news, job listings, and community updates. To generate revenue, Lokal offers premium services to businesses and individuals seeking enhanced visibility. For instance, job posters or advertisers can pay to increase the reach of their listings, ensuring they connect with a larger segment of the local population. This approach not only provides value to users but also creates a sustainable revenue stream for the company.

Lokal Solutions: News, Jobs, and More in Your Backyard

Hyperlocal News Delivery

Lokal stands out by providing real-time hyperlocal news in users’ native languages. This includes updates about civic developments, local governance, crime, sports, and events specific to districts and taluks. Unlike traditional news outlets, Lokal focuses on smaller geographic areas, ensuring users receive relevant, community-specific information. Its user-friendly interface allows seamless browsing of curated news feeds, and users can also contribute news, adding a layer of community engagement. (getlokalapp.com)

Local Events and Activities

Lokal serves as a hub for discovering community activities, including cultural festivals, political rallies, or educational workshops. This feature enables users to participate in their communities actively. Local event promotion also allows businesses and organizations to connect with a highly localized audience.

Emergency Services and Information

The platform provides essential details about local emergency services, including contact numbers for police stations, hospitals, fire departments, and municipal offices. This functionality ensures that users have quick access to help during critical situations. Additionally, Lokal’s integration of alerts for extreme weather or civic disruptions further strengthens its role as a community-focused application. (play.google.com)

Digital Marketplace for Local Businesses

Lokal offers small and medium-sized enterprises (SMEs) a platform to reach their local customer base effectively. Businesses can promote their services and products via the app, helping them bypass traditional advertising challenges. Categories range from home services and retail stores to repair services and health consultations.

Lost and Found Section

Lokal includes a feature that allows users to post information about lost or found items. Whether it’s a missing pet, lost documents, or valuables, this section fosters trust and cooperation among local users, creating a helpful community ecosystem.

Public Service Announcements

Users can access government announcements and schemes relevant to their locality, ensuring they remain informed about subsidies, elections, or other important updates. This feature is especially valuable in rural areas where access to such information can be limited.

Civic Reporting and Issue Resolution

Lokal empowers citizens to report civic issues such as potholes, garbage disposal problems, or water supply disruptions. These reports can be addressed by local authorities who monitor the platform. This feature bridges the gap between citizens and civic agencies, promoting accountability and problem-solving.

Exclusive Content for Regional Communities

Lokal features unique content for various cultural and regional communities, such as festival guides, tips for small-scale farming, or regional recipes. This makes the app more relatable and useful to its audience by integrating lifestyle and cultural relevance into its services.

Jobs and Recruitment Services

In addition to job listings, Lokal also serves recruiters by offering a dedicated space to post job vacancies targeted toward specific geographies. Employers can connect with candidates more effectively, saving both time and costs in the recruitment process.

Specialized Matrimonial Solutions

Lokal’s matrimonial services focus on connecting individuals based on cultural and geographical preferences. Unlike general matrimonial platforms, Lokal offers hyperlocal matchmaking, simplifying the process of finding partners within specific communities or towns.

Lokal Love: Awards and Accolades Worth Applauding

Since its inception in 2018, the platform has expanded its reach to over 180 districts, amassing more than 40 million downloads. This growth underscores Lokal’s role in bridging information gaps for users in Tier II and III cities. (Economic Times)

The platform’s user base primarily comprises individuals aged 18 to 25, many of whom are either employed or pursuing higher education. Additionally, approximately 30% of users are business owners, highlighting Lokal’s appeal across diverse demographics. (DNA India)

Lokal’s innovative approach has garnered recognition within the industry. In April 2020, Forbes featured founders Jani Pasha and Vipul Chaudhary in its “30 Under 30 – Asia – Media, Marketing & Advertising” list, acknowledging their contributions to regional language content delivery. (Forbes)

Further cementing its status as a trusted hyperlocal community platform, Lokal was featured in the Nasscom Emerge 50 awards in November 2020 under the Bharat category. This accolade highlights Lokal’s commitment to serving India’s non-English speaking population.

Lokal has strategically partnered with over 500 local businesses and organizations as of mid-2023. These collaborations include local retailers for promotions, educational institutions for targeted outreach programs, and community organizations to foster engagement. Such partnerships have enhanced Lokal’s service offerings and strengthened its presence in regional markets.

In its marketing efforts, Lokal has organized more than 50 community events in 2023, attracting over 20,000 attendees collectively. These events have significantly boosted community engagement and brand visibility. Additionally, Lokal invests approximately $200,000 annually in localized marketing campaigns, including social media advertising and collaborations with regional influencers. This localized approach has resulted in a user acquisition rate increase of 15% per quarter in targeted markets.

Funding the Lokal Revolution: The Numbers Behind the Success

Lokal has raised a total of $31.8 million in equity funding across four investment rounds, with participation from 27 investors, including 20 institutional backers and 7 angel investors. The funding has been instrumental in expanding its reach and enhancing its technology to better serve India’s non-English speaking population. (Tracxn)

The latest Series B round in October 2022 raised $14.7 million. This round was led by institutional investors like Global Brain, Sony Innovation Fund, and India Quotient. The pre-money valuation stood at $31.6 million, which increased to $46.2 million post-money. Lokal reported trailing twelve-month (TTM) revenue of $2.0 million during this period, reflecting a revenue multiple of 16.5x.

Earlier, in May 2021, Lokal secured $13.4 million in another Series B round. This round saw participation from prominent investors, including Y Combinator, Tencent, and 3one4 Capital, alongside angel investors like Ananyashree Goenka and Harpreet Singh Grover. The pre-money valuation was $8.3 million, and post-money valuation rose to $21.7 million, with TTM revenue of $513,000.

In September 2019, Lokal raised $3.0 million in its Series A round. Institutional investors like 3one4 Capital, Y Combinator, and India Quotient supported this round. The pre-money valuation was negative at -$1.0 million, rising to $2.0 million post-money. The revenue during this time was $25,100, resulting in a revenue multiple of -40.4x.

Lokal’s first seed funding round occurred in May 2018, where it raised $736,000. India Quotient was the primary institutional backer, and angel investors such as Harpreet Singh Grover contributed. In terms of revenue, Lokal has achieved significant growth. From ₹0.3 crore in FY 2019-20, the platform’s revenue grew to ₹24.4 crore in FY 2023-24.

Go Lokal: Where Community Meets Innovation

Lokal is revolutionizing access to hyperlocal content and services for India’s non-English speaking population. It provides a one-stop platform for users to find local news, job opportunities, matrimonial services, classifieds, and real-time updates like commodity prices and weather forecasts. Unlike traditional platforms, Lokal focuses on delivering information tailored to specific districts and taluks, ensuring relevance and accessibility for users. By offering services in regional languages, it bridges the gap between digital platforms and underserved audiences in Tier II and III cities.

Lokal also supports local businesses through targeted advertising solutions. Small and medium enterprises can reach their audience directly, boosting local economies. Its job portal connects employers and job seekers within the same community, simplifying recruitment. Matrimonial services are tailored to local and cultural preferences, ensuring meaningful connections. Through these diverse offerings, Lokal has become an essential tool for millions of users across India.

The startup’s innovative use of technology ensures a seamless user experience. Lokal utilizes advanced algorithms to personalize content and streamline services, catering to users’ unique needs. This focus on hyperlocal relevance has enabled the platform to grow rapidly and make a significant impact. Visit Venture Kites for more insights into startups and entrepreneurship. Whether you’re an aspiring entrepreneur or just curious, there’s something here for everyone.