The online grocery store facilitates same- or next-day delivery through its digital channels, including the app and a WhatsApp chatbot.
Nigeria-based online grocery store Pricepally has successfully raised $1.3 million in seed funding, backed by a group of investors including Samurai Incubate, SOSV, ELEA, Hi2 Global, Chui Ventures, and former Unilever executive David Mureithi.
This latest funding round follows the startup’s pre-seed round in 2021 and positions Pricepally among African food e-commerce startups securing investments this year, including South Africa’s Yebo Fresh and Morocco’s Terraa.
Pricepally, founded in 2019 by Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO), aims to provide affordable and predictable access to fresh produce and packaged food. The startup sources directly from farmers, some under contract, negotiating prices to maintain affordability.
The newly acquired funds will be used to expand beyond the three Nigerian cities currently served and reintroduce group buying, aligning with Pricepally’s commitment to making food purchases more economical for consumers.
The online grocery store facilitates same- or next-day delivery through its digital channels, including the app and a WhatsApp chatbot. While Pricepally operates fulfillment centers within its current cities, it outsources delivery services. The startup prioritizes transparency and visibility in the market, with over 80% of its revenues coming from existing buyers, showcasing high customer retention.
Luther Lawoyin highlighted the company’s control over quality and supply, stating, “We have specific farmers supplying specific products. We also carry out price research across local markets, and our prices are a lot fairer because we’ve taken out several layers of middlemen. 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.”
Pricepally focuses on 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 enhance customer collaboration and unlock wholesale prices, driving accelerated growth.
Additionally, Pricepally aims to reach new customers through April, its recently launched WhatsApp chatbot targeting the mass market in Nigeria, where WhatsApp usage is prolific.
Commenting on the investment, Rena Yoneyama of Samurai Incubate commended Pricepally’s execution ability and resilience in navigating challenges within the Nigerian e-commerce landscape. Yoneyama noted, “Pricepally has worked hard to improve the quality of service, increase customer satisfaction, earn the trust of customers, and has built up a very high percentage of repeat customers. Their healthy unit economics and continuous business growth proves that.”