Online grocery startup Pricepally raises $1.3m to expand in Nigeria
Nigerian online grocery store Pricepally has secured $1.3 million in seed funding, with support from investors such as Samurai Incubate, a Japanese VC that also participated in the startup's 2021 pre-seed round. Other backers include SOSV, ELEA, Hi2 Global, Chui Ventures, and former Unilever executive David Mureithi.
Founded in 2019 by Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO), Pricepally aims to address food cost issues, ensure availability, and maintain price predictability in the face of shortages and inflation.
The funding will be utilized to expand beyond the three cities currently served in Nigeria and reintroduce group buying to fulfill the company's commitment to making food affordable for consumers. Pricepally enables same or next-day delivery through its digital channels, including the app and WhatsApp chatbot, utilizing a network of fulfillment centers within its operational cities while outsourcing delivery services.
Africa's urban food systems face three significant challenges contributing to their fragmentation. Firstly, many people are located far from existing food sources, leading to difficulties in accessing quality farm-fresh produce and contributing to food wastage in farms and main markets. Secondly, high transportation costs make it challenging for merchants to be profitable, thereby increasing overall food costs. Lastly, and perhaps most significantly, African cities contend with numerous middlemen between farmers and consumers, driving up food prices, especially in the face of prevailing inflation. Pricepally aims to address these challenges by implementing an organized system that aggregates supply and demand. Through the Pricepally Mobile App and website, customers are directly connected to farm-fresh food items, eliminating unnecessary intermediaries. This approach makes food more accessible and affordable for consumers. At the same time, farmers and wholesalers benefit from a consistent uptake of their produce, reducing food wastage resulting from a lack of demand.