Pricepally, an online grocery startup, secures $1.3 million for expansion in Nigeria.

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Nigerian online grocery store Pricepally has secured $1.3 million in seed funding, with support from investors such as Samurai Incubate, SOSV, ELEA, Hi2 Global, Chui Ventures, and former Unilever executive David Mureithi. This funding round follows the startup’s 2021 pre-seed round, which also involved Samurai Incubate. Pricepally plans to utilize the funds to expand its presence beyond the three cities it currently serves in Nigeria. Additionally, the startup aims to reintroduce group buying as part of its strategy to enable consumers to access affordable food. Pricepally, founded by Luther Lawoyin, Deepak Bansal, Mosun Lawoyin, and Jummai Abalaka in 2019, facilitates same or next-day delivery of fresh produce and packaged food ordered through its digital platforms, including the app and WhatsApp chatbot. The company operates fulfillment centers within its current city locations but outsources its delivery services. The expansion aligns with Pricepally’s mission to reduce food costs, ensure availability, and maintain price predictability in response to challenges such as shortages and rising inflation.


Pricepally sources fresh produce directly from farmers, some under contract, and packaged food from manufacturers. The startup, led by CEO Luther Lawoyin, negotiates prices for produce and maintains short food supply chains to ensure affordability. By having specific farmers for particular products, the company has more control over quality and supply. Lawoyin emphasizes that Pricepally aims to capitalize on its sourcing strength to address food insecurity in Nigeria. The startup focuses on transparency, with prices fairer due to eliminating multiple layers of middlemen. Customer growth and retention have been steady, with over 80% of revenues coming from existing buyers.

Pricepally primarily targets retail buyers, constituting 70% of its customer base, as they pay upfront, are cost-effective to acquire, and offer higher margins. The reintroduction of online group buying is expected to further accelerate growth, allowing retail customers to leverage collective purchasing power for wholesale prices. The startup also aims to attract new customers through its recently launched WhatsApp chatbot, April, catering to the mass market in Nigeria, where WhatsApp usage is widespread.

Samurai Incubate, one of the investors, commends Pricepally for its execution ability in the challenging e-commerce landscape of Nigeria. The startup’s focus on improving service quality, customer satisfaction, and building trust has resulted in healthy unit economics and continuous business growth, demonstrating its success in a unique market environment

Source: TechCrunch