Nigerian startup Pricepally secures $1.3M in funding

Nigeria's online grocery platform, Pricepally, has recently garnered a seed funding of $1.3M. This investment was spearheaded by Japanese VC Samurai Incubate, with participation from SOSV, ELEA, Hi2 Global, Chui Ventures, and ex-Unilever executive David Mureithi.

• Funding Utility: The startup plans to use the funds to extend its services beyond the three Nigerian cities it currently operates in and reintroduce group buying to reaffirm its commitment to affordable food buying.

• Unique Offering: Pricepally promises convenient delivery services, offering same-day or next-day delivery of orders through its app or WhatsApp chatbot.

• Background and History: It was founded in 2019 by Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO) and Jummai Abalaka (COO), with a mission to counter food shortages and price hikes due to inflation by offering affordable and available food options.

• Production Proces: The startup sources fresh produce directly from farmers and packaged food from manufacturers, enabling it to have more control over quality and supply. It also conducts market research to ensure fair pricing.

• Revenue Source: Luther Lawoyin highlights the importance of transparency in Pricepally's operations, which has contributed to its consistent growth and high customer retention. More than 80% of its revenue comes from existing customers, validating its unique value proposition.

• Target Market: The platform primarily targets retail buyers, attributing 70% of its customer base to this group, as they pay upfront and are cheaper to acquire. The reintroduction of online group buying is anticipated to boost growth by unlocking wholesale prices for these retail customers.

Pricepally has also launched a new WhatsApp chatbot called April, aimed at reaching a wider audience in Nigeria, which is known for high WhatsApp usage.