Sylvia Duruson
Nigerian online grocery startup Pricepally has secured $1.3 million in seed funding to expand its operations. Backers include returning investor Samurai Incubate and new investors SOSV, ELEA, Hi2 Global and Chui Ventures.
Pricepally will use the capital to move beyond its current 3 cities and reintroduce group buying discounts to deliver affordable fresh produce and packaged foods. The startup offers same-day or next-day delivery through its app and WhatsApp after sourcing directly from farmers and manufacturers.
Cofounders Luther Lawoyin, Deepak Bansal, Mosun Lawoyin and Jummai Abalaka launched Pricepally in 2019. Their goal was reducing food costs and improving availability amid shortages and inflation in Nigeria.
In light of rising costs, Pricepally negotiates prices, eliminates middlemen, and ensures affordable grocery options. As food prices continue surging upwards, group discounts will provide an accelerated growth driver.
Additionally, WhatsApp chatbot April, launched in early 2022, unlocks mass market potential in chat-savvy Nigeria while complementing the existing app’s higher-income urban users.
Over 80% of revenues come from repeat buyers, validating Pricepally’s value proposition. Cofounder Lawoyin attributes this loyalty to transparency throughout the supply chain and high customer service levels, which build trust.
While Pricepally mainly serves retail consumers who pay upfront with better margins, the startup expects group buying discounts to attract more price-sensitive buyers struggling with elevated food costs.
Investor Rena Yoneyama of Samurai Incubate praised Pricepally’s strong execution despite Nigeria’s ecommerce difficulties. Their healthy unit economics and continuous growth prove the viability, she said.
