Pricepally, a Nigerian online grocery store for fresh produce and packaged food, has raised $1.3 million seed funding.
Samurai Incubate backed the funding with SOSV, ELEA, Hi2 Global, Chui Ventures and ex-Unilever executive David Mureithi also participating.
The new funding names Pricepally among the few African food e-commerce startups that have raised funding this year.
Pricepally says it will use the fund to expand beyond the three cities it currently serves in Nigeria.
It also plans to re-introduce group buying . The startup anticipates that the re-introduction of online group buying, will enable more retail customers to come together to unlock wholesale prices
That way the startup will keep up with its promise of enabling consumers to buy food affordably and also help accelerate its growth as food prices continue to rise.
Luther Lawoyin (CEO), co-founded Pricepally with Deepak Bansal (CTO), Mosun Lawoyin (CXO) and Jummai Abalaka (COO), in 2019
The goals were to reduce the cost of food, ensure availability, and keep prices predictable amid shortages and increasing prices.
The startup facilitates same or next day delivery of the fresh farm produce ordered.
Its digital channels include the app and April its newly launched WhatsApp chatbot.
It is also looking to unlock new customers through April,
According to CEO, Luther Lawoyin , Pricepally sources fresh produce directly from farmers, and packaged food from manufacturers.
““We have more control over quality and supply because we have specific farmers supplying specific products.. “ he said.
He also mentioned transparency as one of the strengths of Pricepally and its customer retention factor.
“In many ways we are more than just selling products. We are bringing transparency and visibility into the market.”
With more than 80% of its revenue coming from its existing buyers, the startup boldly attributes its customer retention to transparency and fair pricesThe startup mainly targets retail buyers, who make up 70% of its customers .
It has a network of fulfillment centers within the three cities it currently operates in while outsourcing delivery services.
“The idea now going forward is for us to capitalize on our sourcing strength to solve one of Nigeria’s biggest problems currently, which is food insecurity .” said Lawoyin.