Pricepally, a Nigerian online grocery store specializing in fresh produce and packaged food, has successfully secured $1.3 million in seed funding.
This funding round was supported by Samurai Incubate, a Japanese VC that previously participated in the startup’s 2021 pre-seed round, as well as SOSV, ELEA, Hi2 Global, Chui Ventures, and former Unilever executive David Mureithi.
With this new capital injection, Pricepally plans to expand its operations beyond the three cities it currently serves in Nigeria. Additionally, the startup aims to reintroduce group buying to fulfill its commitment to making food purchases more affordable for consumers.
Pricepally facilitates efficient same- or next-day delivery of digitally ordered produce through its app and WhatsApp chatbot. While it operates fulfillment centers within its current cities, it outsources delivery services.
Founded in 2019 by Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO), Pricepally focuses on reducing food costs, ensuring availability, and maintaining price predictability, particularly during times of shortages and rising inflation.
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The startup directly sources fresh produce from farmers, some under contract, and packaged food from manufacturers. The negotiation of produce prices, combined with short food supply chains, enables Pricepally to offer affordable supplies.
Luther Lawoyin emphasized the company’s commitment to leveraging its sourcing strength to address Nigeria’s food insecurity issues. By maintaining transparency in its operations, Pricepally has achieved steady customer growth and high retention rates.
Over 80% of the startup’s revenues come from existing buyers, showcasing the validity of its value proposition. Pricepally primarily targets retail buyers, constituting 70% of its customer base, as they pay upfront, are cost-effective to acquire, and offer higher margins.
Pricepally plans to reintroduce online group buying to further empower retail customers to access wholesale prices collaboratively. The recent launch of a WhatsApp chatbot aims to tap into the mass market in Nigeria, where WhatsApp usage is widespread.
Rena Yoneyama of Samurai Incubate praised Pricepally for its execution ability, acknowledging the challenges of e-commerce in Nigeria and highlighting the startup’s efforts to enhance service quality, customer satisfaction, and trust, resulting in healthy unit economics and continuous business growth.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
