Grace Ashiru
South African proptech firm Neighbourgood announced the acquisition of Cape Town-based travel tech startup Local Knowledge. The deal, a combination of cash and equity, is valued at $1.5 million.
Neighbourgood’s statement, as reported by Bendada.com, emphasizes the synergy of this acquisition: “This isn’t merely a business transaction; it’s the fusion of two forward-thinking visions, aiming to revolutionize our experience of cities. We’re focused on creating meaningful connections and delivering a positive impact on local communities.”
In the past year, South Africa welcomed 5.8 million international tourists. Since its inception in 2020, Neighbourgood has offered around 1000 living and workspaces, primarily in South Africa, with plans to add 650 more next year.
Neighbourgood highlighted modern travelers’ unique challenges, such as finding authentic cultural experiences and reliable information. Local Knowledge addresses these issues by linking travelers with local communities for memorable experiences.
With the acquisition, Neighbourgood aims to enhance its services through the expertise of Local Knowledge. This includes catering to over 30,000 millennial and Gen Z travelers, incorporating advanced technologies, and integrating a dedicated team. This collaboration will birth ‘The Experience Vertical,’ a specialized team devoted to helping Neighbourgood’s guests forge lasting memories and connections.
The focus will be on authentic local experiences, community events, and a user-friendly app that provides personalized recommendations and insights into city life. The app will be a digital guide to a city’s hidden treasures, curated by locals.
Murray Clark, CEO of Neighbourgood, sees this acquisition as pivotal for the travel and hospitality sector. He believes it marks a shift towards travel experiences that are not just about places but about the relationships and communities formed along the journey. With this merger, Neighborhood and Local Knowledge are set to spearhead this transformation.
Looking ahead, Neighbourgood is planning to extend its operations from Cape Town to California next year.
