Custom cake company, Lola from Bahrain, secures $1.3 million pre-seed funding to broaden its personalized cake ordering service in Saudi Arabia and the Gulf Cooperation Council region.
Lola Cake Raises $1.3 Million, Expands Across the Region
Lola Cake, a pioneering cake customization startup, has secured $1.3 million in a pre-seed round. The investment will fuel the company's growth and expansion across the region, with plans to establish a stronger presence in Saudi Arabia, starting with Jeddah and the Eastern Province.
Founded by Othman Janahi in September 2023, Lola aims to set new industry standards, deliver unparalleled customization options, and become the centerpiece of every celebration. The startup has already made a significant impact, growing its size and market share five times since launch and expanding from Bahrain to Riyadh and the UAE.
"We are thrilled about the investment and the strategic guidance from our investors," said Othman Janahi, Founder and CEO of Lola. "This funding will enable us to enhance our platform, expand our team, optimize logistics, and accelerate our expansion."
The round was led by Vision Ventures and Plus VC, with participation from strategic angel investors. Both venture capital firms expressed excitement about supporting Othman Janahi and his team as they transform the way people celebrate. Hasan Haider, Managing Partner at Plus VC, stated that by seamlessly integrating personalization and technology into the gifting experience, Lola is revolutionizing the cake industry.
Lola's innovative ordering app allows clients to design their cakes in under a minute, with thousands of designs, colours, and customized combinations to choose from. The app provides an easy-to-use and fun experience that enables customers to imagine and see how their cake will look.
The cake industry is vast and competitive, but Lola focuses on baking memories, not just delivering a product. "Our approach to cakes is disruptive," said Kais Al Essa, Founding Partner and CEO at Vision Ventures. "I envision that in the future, Lola will empower cake making everywhere."
While specific details regarding Lola's expansion plans across Saudi Arabia are not yet available, customers can already enjoy gluten-free and refined sugar-free desserts in Jeddah, as part of Lola's summer collection. To stay updated on Lola's expansion and other news, following their official social media channels or news releases is advisable.
Meanwhile, the broader restaurant startup investment landscape in Saudi Arabia remains active, with venture capital and angel investors focusing on food and e-commerce startups. However, none specifically mention Lola Cake's funding or expansion plans at this time.
In other news, Saudi meal subscription startup Calo has expanded to the UK with the acquisition of two local meal delivery brands. Dubai's Opontia also raised $20 million seed to acquire and grow ecommerce brands in the Middle East & Africa. These developments further underscore the vibrant and growing startup ecosystem in the region.
The investment secured by Lola Cake will be utilized to augment their platform and team, as well as optimize logistics, with the aim of accelerating their expansion across the region. Vision Ventures and Plus VC, key investors in this round, see potential in using technology to revolutionize the cake industry through Lola's innovative approach, focusing on personalization and creating memorable experiences.
