Tencent Invests in Indian Social Media Platform Lokal

Lokal Secures $12 Million in Funding Led by Tencent

Lokal, an Indian hyperlocal social media platform, has successfully raised $12 million in a recent financing round. This investment was spearheaded by the Chinese internet conglomerate, Tencent, as confirmed by a source with knowledge of the deal.

Series A Funding Details

The Series A funding round also saw participation from existing investors, including 3one4 Capital, Y Combinator, and India Quotient. The source requested anonymity due to the confidential nature of the transaction.

Requests for comment sent to both Tencent and Lokal went unanswered.

Addressing the Non-English Speaking Indian Market

Estimates suggest that over 400 million Indians currently online do not primarily use English. This demographic faces limited access to internet services, as few platforms are specifically designed to cater to their needs.

Lokal aims to bridge this gap by providing a comprehensive suite of services tailored for this audience.

Lokal’s App Features and Services

The company’s flagship hyperlocal social media application allows non-English speaking users to connect and engage with each other. It fosters community interaction and information sharing.

Beyond social networking, the app facilitates job searching within local areas. Users can also access crucial information like commodity prices, real estate values, and matrimonial advertisements – content traditionally found in local newspapers.

Furthermore, Lokal offers upskilling services to its user base.

User Growth and Regional Popularity

According to the startup’s website, the Lokal app has surpassed 10 million downloads. It has gained significant traction in multiple states throughout South India.

Navigating Investment Regulations

This new investment arrives over a year and a half after the Indian government implemented regulations requiring approval for capital raising from Chinese investors by Indian companies. This initially slowed down Chinese investment activity in India.

However, recent months have witnessed a resurgence of investments from Tencent and other Chinese firms.

Tencent’s Recent Investments in India

In August, TechCrunch reported that Pocket FM was in advanced discussions to secure funding from Tencent and other investors. Earlier this year, Tencent invested over $200 million in the Indian social media platform ShareChat, although this involvement wasn’t publicly disclosed initially.

Tencent has also increased its investment in the Indian music streaming service Gaana. The company has increasingly utilized convertible debts in recent investments, providing time for regulatory approvals and offering the option to convert debt into equity at a later stage.