Biography of Rehan Arshad: Founder & CEO of LSM Pakistan- Entrepreneur
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Rehan Arshad: Founder of LSM Pakistan
Rehan Arshad, a dynamic entrepreneur from Faisalabad,
Pakistan, is the Founder and CEO of LSM, also known as Life Stock Market. His
journey into entrepreneurship began with a background in web development and
graphic design. Rehan has consistently worked towards making technology
accessible to businesses of all sizes through his company, AY Webtech, which
provides services like web and app development, SEO, and internet marketing.
However, his latest venture, LSM, takes his passion for innovation a step further
into the pet industry.
Founding LSM: Pakistan's First Classified Pet Marketplace
In 2021, Rehan, alongside his co-founder Muhammad Abdullah,
established LSM – Pakistan’s first classified pet marketplace app. LSM offers
pet lovers a comprehensive platform where they can buy, sell, and trade pets
such as birds, cats, and dogs, along with a variety of pet-related services,
including delivery and food supplies. The idea behind LSM was to streamline the
pet trading process and make it more accessible to a larger audience,
addressing the needs of pet lovers across Pakistan. The platform’s success has
been based on its ability to connect pet owners with sellers while ensuring
payment security.
Seeking Investment to Scale Up
In 2023, Rehan and Abdullah pitched their startup on Shark
Tank Pakistan, seeking a significant investment to fuel their expansion. They
requested PKR 3 crore for 20% equity, placing the valuation of LSM at PKR 15
crore. They aimed to use the funds for several key areas: technology
development, upgrading delivery services, and expanding their reach
internationally, particularly into the Middle East, starting with Dubai. Their
ambition to make LSM a global pet marketplace was clear, and they highlighted the
growth potential of the platform.
Financial Breakdown of LSM’s Needs
The duo presented a detailed financial plan during their
pitch, explaining how they would allocate the investment. Rehan outlined that
PKR 8 million would be used for further tech development, while PKR 10 million
would improve the delivery service infrastructure. The remaining PKR 12 million
would be invested in expanding operations beyond Pakistan, specifically
targeting the Middle Eastern market. With these funds, they hoped to scale up
LSM’s services and meet the growing demand in both local and international
markets.
LSM’s Early Successes: Pet Deliveries and Revenue Growth
In just 2.5 years of operation, LSM had already made
significant strides in the pet marketplace. The company had facilitated the
delivery of 350 pets, with a majority of these being birds (80%), followed by
cats and dogs (20%). In addition to pet trading, LSM had also expanded into
selling pet accessories, such as food and supplies. In 2023, the company
generated around PKR 1 million in revenue from these accessory sales. Their
gross margins ranged between 10% and 30%, depending on the specific products
and services.
Biography of Rehan Arshad: Founder & CEO of LSM Pakistan- Entrepreneur/age/net worth/startup/shark tank/LSM Pakistan story/Rehan Arshad story
Challenges Faced in the Pet Market
Despite its early success, LSM faced several challenges in
scaling its operations. One of the biggest hurdles was establishing a reliable
delivery network across Pakistan, ensuring pets were transported safely and
efficiently. Another issue was expanding their reach to a larger customer base,
which required increased marketing and promotional efforts. The duo
acknowledged that they had yet to invest heavily in marketing, which likely
limited their growth potential at the time of the pitch.
Ambitious Plans for Expansion
With a vision to transform the pet marketplace, Rehan and
Abdullah planned to take LSM to the next level. Their primary goal was to
expand internationally, starting with the UAE. They saw a growing demand for
pets and pet-related services in the region, and Dubai’s pet-loving population
seemed like the perfect target market for their services. Expanding into this
new territory would require not only significant investment but also the right
partnerships and local knowledge to navigate the Middle Eastern market.
Investors’ Hesitation on the Deal
While the sharks on Shark Tank Pakistan appreciated the
uniqueness of LSM’s concept, they were hesitant to invest the requested amount.
Their concerns centered around the scalability of the business and the
substantial equity being offered. The sharks were skeptical about whether the
business could generate enough revenue to justify the high valuation and
whether it could grow at the pace Rehan and Abdullah envisioned. Despite these
concerns, they praised the founders for their hard work and innovative approach.
Sharks Step Out of the Deal
After careful consideration, none of the sharks were willing
to proceed with the deal. All of them decided to step out, citing various
reasons such as the high valuation, the challenges in scaling the business, and
concerns over the relatively low revenue figures for a business that had been
operating for over two years. While the decision to not invest was
disappointing, it provided Rehan and Abdullah with valuable feedback on their
business strategy and the areas they needed to improve.
The Value of the Pitch Experience
Although they left Shark Tank without a deal, Rehan and
Abdullah gained valuable exposure and insights from the experience. The pitch
allowed them to showcase their startup to a wider audience, which could lead to
future opportunities. It also gave them the chance to refine their business
model and think critically about the next steps for LSM. Despite the setback,
the duo remained confident in their ability to grow the business and continue
to innovate in the pet industry.
Strengths and Weaknesses of LSM
LSM’s strengths were clear: it was the first platform of its
kind in Pakistan, offering a unique and much-needed service to pet lovers. The
founders were knowledgeable and passionate about their venture, and their
tech-driven approach to pet trading set them apart from traditional methods.
However, the business had its weaknesses, particularly in its scalability and
revenue generation. The high valuation and lack of substantial marketing
efforts contributed to the sharks’ decision to decline the investment.
Looking Ahead: Future of LSM
Rehan and Abdullah’s vision for LSM is far from over.
Despite the rejection on Shark Tank, they remain committed to expanding the
business and making it a household name in the pet industry. They plan to
continue refining their platform, investing in technology, and growing their
customer base through more targeted marketing efforts. They are optimistic that
with time, persistence, and the right partnerships, LSM will thrive both in
Pakistan and internationally.
The Journey Continues
As they move forward, Rehan and Abdullah are focused on
learning from the experience and refining their approach. The feedback from the
sharks has provided them with important insights into the challenges they face
and the steps they need to take to overcome them. They are determined to
continue growing LSM and achieving their vision of becoming the leading pet
marketplace in the region. With their passion and dedication, the future of LSM
looks promising, and they are poised to make their mark in the pet industry.
Timeline for story
2021 - Rehan Arshad and Muhammad Abdullah founded LSM,
Pakistan’s first classified pet marketplace.
2023 - LSM pitched on Shark Tank Pakistan, seeking PKR 3
crore for 20% equity.
2023 - LSM generated PKR 1 million in revenue from pet
accessories.
2023 - LSM successfully delivered 350 pets, predominantly
birds (80%).
2023 - LSM faced challenges in scaling operations and
marketing efforts.
2023 - Sharks on Shark Tank Pakistan declined to invest in
LSM.
2025 - Rehan and Abdullah remain committed to expanding LSM,
focusing on tech, marketing, and international growth, starting with Dubai.
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