Lokal, Pakistan’s budget hotel room network, has held a pre-seed round of funding at a valuation of $10 million.
The company has not disclosed the amount raised in the funding round but said the funds will be used to fuel its growth and expansion plans. The funding round was funding round led by UK-based equity funding platform Wahed X along with a number of angel investors from Silicon Valley and the United Arab Emirates. This is WahedX’s first-ever investment in a Pakistani startup.
“We saw an opportunity to bridge the gap between the high-demand for short-term budget stays and the lack of technology and expertise for local property owners to deliver a world-class experience,” said Asim Kidwai, co-founder at Lokal.
“Lokal’s cutting-edge platform is designed to upgrade facilities and services of local properties, and help property owners, big or small, to operate short-term stays efficiently, enhance customer satisfaction and boost occupancy. With this funding, we’ll be able to expand our network and bring this experience to more travellers in more markets,” he added.
“We are very pleased to close our first investment in Pakistan,” said Safdar Alam, CEO at WahedX.
“It’s exciting to be a part of LOKAL’s journey and I think, particularly as Pakistan moves into a new wave of tourism in 2023, it can be part of the remedy the tourism sector needs to help bolster growth. We believe it is important for all investors to have access to opportunities to grow their wealth in a meaningful way that directs capital to businesses that are aligned to their values. We will continue to bring more ethical deals like this one to the market,” Alam added.
The company is solving the issue of lack of safe, reliable and affordable accommodation that travelers face in emerging markets. Lokal is creating a network of standardized budget hotel rooms that offer travelers high-quality stays.
The company is focused on expanding its operations within Pakistan for now but has plans to later expand to other emerging markets in the MENA and Southeast Asia regions.
Via Khaleej Times