Lahore-based startup Laam has secured $5.5 million in an all-equity seed round led by Disrupt Ventures and Zayn VC, aiming to expand its online marketplace for South Asian fashion globally. Founded in 2021 by Arif Iqbal, Laam addresses the growing demand for ethnic wear among South Asians living abroad, providing a curated catalog of over 100,000 items from 1,200 Pakistani sellers.

Iqbal, a veteran of tech companies like Meta, Pinterest, Microsoft, and eBay, recognized the lack of accessible ethnic fashion options while living in the U.S. He leveraged his experience to create Laam, which has already seen significant traction, with sales spanning over 100 countries. The startup's top markets by revenue include the U.S., Canada, the U.K., and the Middle East, with Pakistan still accounting for the largest number of buyers.

Laam's platform utilizes a mix of data and machine learning to offer personalization to consumers, providing features like chatbots, search functions, and product recommendations. For sellers, the startup offers logistics, supply chain infrastructure, and warehousing, as well as tools to help them manage inventory and optimize their online presence. Laam also provides customization options for high-end formal wear, ensuring that products meet customer specifications.

In addition to its consumer-facing marketplace, Laam offers an infrastructure platform called Octane, which enables local businesses to establish an online presence and expand globally. Currently, over 50 businesses utilize Octane, which also integrates with Laam's online marketplace.

Although Laam faces competition from other Pakistani online marketplaces and platforms, Iqbal believes that his startup's unique proposition lies in its ability to offer a diverse range of products from distinct brands in Pakistan and worldwide. The $5.5 million seed round, which included participation from Graph Ventures, Mentors Fund, and tech executives from Oracle, Microsoft, Google, and Salesforce, will be used to expand Laam's footprint beyond Pakistan and establish a presence in significant markets outside of the country.

Laam's funding comes at a time when the Pakistani startup ecosystem is experiencing a slowdown, with funding dropping by 65% year-on-year to $12.3 million in 2024 YTD, according to Tracxn data. Despite this, Iqbal remains optimistic about Laam's prospects, with plans to set up an office in the UAE and eventually establish a U.S. presence.

As Laam continues to bridge the gap in South Asian fashion e-commerce, its success could have far-reaching implications for the industry, paving the way for other startups to tap into the growing demand for ethnic wear globally.