If e-commerce and Instagram had a baby, that would be LoveLocal, says Akanksha Hazaari

One fascinating aspect of your life is that you were homeschooled on ships. Can you tell us about that experience and how it influenced you?

I have had the privilege of a very interesting life, and it started early. My father was in the merchant navy and became a captain at a young age. One of the conditions he set for taking the position was that his family had to be allowed to sail with him, as he didn’t want to be away for such long periods.

Because of that, I spent many of my formative years sailing on ships. It was an unusual way to grow up, but it made me very self-sufficient since there were no other kids around—just my parents and a crew of adults.

You're often at sea for weeks, with only the ocean in sight. You have to develop a lot of imagination to entertain yourself. I would make up stories in my head, and my parents allowed me to let my imagination run wild. There were no toys, games, or parks—just the ship and the ocean. I also became an avid reader, and I think that environment played a big part in that.

Do you think not being part of a traditional school system made you more individualistic and helped you take bold decisions, like starting your own company?

When you don’t have a cookie-cutter background, you don’t really fit into any box. If you don’t fit into a box from an early age, you’re probably less subject to other people’s rules and expectations. You’re more willing to follow your own path. From that perspective, I’ve never really been affected by or cared much about what others think of me. My definition of success is shaped by my parents and myself, not by what society deems right.

When I entered my 20s and marriage proposals started coming, my father would say, "I am not the owner of my daughter. If you are interested, please speak to her." The expectations and investments made in me were the same as my brother, whether in sports or education, and they expected me to be financially independent—something that wasn’t even up for discussion.

My parents didn’t have much money when I was growing up, which instilled in me a strong work ethic; I’ve been working since I was 17. My mother always said that the measure of your life is defined by the difference you make in your community and the lives of those around you. If your life isn't making a difference, then it lacks value.

That influence is evident in your startup ideas as well. Given your background in policy and politics, why did you choose entrepreneurship over a career in that field?

My first job was at a think tank called the Aspen Institute in Washington, D.C. However, I quickly became disillusioned with the policy world. I observed that, regardless of the country, much of politics is corrupt and self-interested.

After nearly three years in policy, I recognized that many individuals in the field weren’t genuinely interested in making a difference; instead, politics often serves a small group of people, even in a country like the US.

At the same time, when I was 20, I co-founded my first startup, which was somewhat accidental. Along with a few friends, I established the first policy think tank in the US aimed at young people, called Young Professionals in Foreign Policy (YPFP). While my day job left me feeling jaded, this entrepreneurial venture inspired me.

Why did you decide to start up in India?

After success with YPFP, I realised I wanted to spend my time building solutions to problems, which I now recognize as entrepreneurship. By that point, I was already committed to starting up in India.

I believed I could have a significant impact and wanted to find the right time to participate in India's growth story. Having spent time growing up in Hong Kong, I had a front-row seat to China's growth. As I observed India, it seemed like we were on a similar journey, albeit a bit later. In contrast, if I were to build a business in the US, I might feel like a tiny cog in a vast machine, unsure of my significance.

Let's discuss your first venture in India, m.paani, and how it evolved into what is now known as LoveLocal. Can you walk us through that journey?

When I moved to India to work in consulting, I was fortunate to be assigned to an agritech project. This opportunity allowed me to travel across India for a year, living in villages from Karnataka to Arunachal Pradesh. During this time, around 2010 to 2015, the mobile wave was beginning.

 

While travelling, I noticed the pervasive presence of kirana stores, regardless of the city's size. I realised that digitising these local retailers could have a substantial impact, especially as they often lacked technological knowledge. I expected retail to adopt technology faster than agriculture since it was more urban-focused. That’s how m.paani was born.

But the cost of SMS was a significant concern, an important pillar of the model, making it challenging to maintain the program's sustainability. At that time, India hadn’t yet experienced the Jio revolution, and mobile data was scarce.

Then Jio, Aadhaar, UPI, and GST happened. These developments laid the groundwork for the e-commerce revolution. In 2020, we launched LoveLocal, which enables consumers to discover and shop from their local kirana stores. The covid-19 pandemic accelerated digitization, and we saw rapid growth.

But why did you choose to build your startup in Mumbai?

I chose to start in Mumbai because I see it as India's true international city, embodying a cosmopolitan spirit that mirrors cities like New York and London. Currently, it boasts the best infrastructure in India, and with ongoing investments, I believe it will transform significantly in the next five to ten years. While Mumbai faces challenges, such as high living costs and lower tech density compared to Bengaluru, I think it will reach a tipping point where its infrastructure and cultural benefits outweigh these challenges.

Moreover, as a woman, I feel that Mumbai is the safest city in India. I’ve travelled extensively and feel more secure here than in many places worldwide. For women to participate in the economy, a safe environment is crucial, and Mumbai offers that level of safety and autonomy.

Many e-commerce companies shifted from the kirana store model to dark stores. What do you think prompted this change, and what issues did you solve that they couldn't?

Many startups have come and gone trying to build this, and I believe this is largely due to one main factor: the focus on the consumer's perspective. When businesses start, they typically source from local stores but soon find they lack control over the supply side of the marketplace. This often leads to the decision to open dark stores.

In reality, over 95% of daily essentials shopping in Mumbai still occurs at local stores, whether for groceries, food, or medicines. This approach is also more economically viable, as many peers in the market are struggling with profitability. It costs our peers between ₹100 and ₹140 to process an order, factoring in costs like dark store maintenance and last-mile delivery. In contrast, we only spend ₹4 per order because we operate as an assetless marketplace. We don’t hold products or maintain warehouses; instead, local stores handle deliveries.

One thing that happens is companies often lose patience. In any marketplace business, you're always managing the experience provided by your supply side. It takes significant effort. You have to work through these challenges; overnight success is rare, and constant management is necessary.

In the past, some businesses have also rushed to adopt dark store models because of funding availability. When interest in quick commerce surged, capital became more accessible, leading entrepreneurs to pivot toward these trends.

What does success mean for you in the context of Lovelocal?

Success for me, with LoveLocal, is impact at scale. We’ve been approached for acquisitions, but I don't feel like I've solved the problem at scale yet. Success will be when I feel like we’ve truly digitised and empowered kiranas, revolutionising how the average Indian shops for daily essentials. When that behaviour becomes the new norm, that will be a success for me.

I always tell founders: if you're chasing money, don’t start a company. There are easier ways to make money. But if you're passionate about solving a problem and committed to spending 10 years working on it, then go ahead.

This journey can be incredibly lonely and filled with ups and downs. Can you share some of the challenges you've faced along the way?

There are definitely challenges. Being a female founder, not just in India but globally, is a challenge. Less than 1% of funding goes to women-led companies worldwide, so you're starting on the back foot. It improves as you build a track record, but it's still not an even playing field with the opposite gender. Apart from that, I didn’t know anyone when I moved to Mumbai. I didn’t have family here, so there was a learning curve for me.

Covid was incredibly tough. At the time, we didn’t know how long it would last, and unfortunately, we lost three members of our team. That's the hardest thing, something you never imagine dealing with as a founder or leader. You stop thinking about running a business and just worry about your team’s well-being.

But it’s important to keep that perspective that I am very privileged. I had the choice to start a business, and I didn’t do it out of necessity. I chose to move to India and start a company. No one forced me to be a founder. So while it’s stressful, it's the stress I’ve chosen. I get to work on a problem I chose, with people I chose, and do the work I want to do.

Based on your experience so far, what advice would you give to young entrepreneurs, especially women, given your experience building a company in India as a woman?

The two sectors that provide excellent training are finance and consulting if you don’t have a compelling idea but want to start something. Roles in founder's offices are also valuable for understanding how a startup operates.

Success is statistically unlikely, so you need to deeply care about the problem you aim to solve. If you encounter failure, it’s essential to fail fast and pivot quickly. It's important to set limits on how much risk capital you're willing to lose.

Venture capital is risk capital, and investors expect many companies to fail. If you raise money, do so from sources that can afford to take risks. Be cautious about borrowing from friends or family, as this can create long-term issues for your relationships if the business doesn't succeed.

Women founders, be prepared for it to take longer than expected. Second, pay attention to red flags during the process. For example, an investor could ask if you have a male co-founder or if you plan to get married or have kids. These personal questions are inappropriate unless they ask every founder the same thing, which is unlikely. If possible, try to include at least one female investor in your cap table.

We often talk about financial independence, but it's also essential to achieve biological independence. So a practical piece of advice for women to all career women in their 20s: consider freezing your eggs if you can afford it. It acts as an insurance policy, giving you biological independence.

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