Prespallyis a Nigerian online fresh produce and packaged food grocer that has raised $1.3 million in seed funding, backed by Samurai Incubate; Japanese venture capital firms also participated in the startup’s 2021 pre-seed funding, SOSV, ELEA, Hi2 Global, Chui Ventures and former Unilever executive David Mureithi.
With the fresh funding, the startup joins a number of African food e-commerce startups including South Africa’s Yebo Fresh and Morocco’s TerraThe companies have raised money this year as venture capitalists continue to scale back their operations.
Pricepally said it will use the funds to expand beyond the three cities it currently serves in Nigeria and reintroduce group buying to deliver on its promise of enabling consumers to buy food at affordable prices. The startup offers same-day or next-day delivery of its products. Order via its digital channels including app and WhatsApp chatbot. The company has a network of fulfillment centers in the three cities where it currently operates, but outsources delivery services.
Luther Loyin (CEO), Deepak Bansal (Chief Technology Officer), Mohsen Ravaine (CXO) and Jumai Abaraka Chief Operating Officer (COO) launched Pricepally in 2019 to reduce food costs, ensure supply and keep prices predictable in the face of shortages and price increases: rising inflation.
The startup says it sources fresh produce directly from farmers, some of whom it contracts with, and packages food from manufacturers. Lawoyin (CEO) told TechCrunch that the price of agricultural products is usually determined through negotiation, which combined with the short food supply chain can ensure that the cost of supply is affordable.
“We have more control over quality and supply because we have specific farmers supplying specific products. We also do price research in local markets and our prices are fairer just because we’ve removed several layers of middlemen. This Idea Now we are going to use our procurement strength to solve one of Nigeria’s biggest problems right now food safety”, said Laoine.
“In many ways, we’re not just selling products. We’re bringing transparency and visibility to the market.”
Lawoyin cites as one of the main contributing factors to Pricepally’s steady growth in customer accounts and high customer retention rates, with its existing buyers accounting for over 80% of its revenue: a testament to the effectiveness of its value proposition.
Lawoyin said the startup is targeting retail buyers, who make up 70% of its customers, because unlike businesses, they pay up front, making purchases cheaper and more profitable.
The startup expects the relaunch of online group buying to bring more retail customers together to unlock wholesale prices, which will help accelerate its growth as food prices continue to rise. Additionally, it is looking to unlock new customers. As of April, its newly launched WhatsApp chatbot targets the mass market in Nigeria, which has one of the highest WhatsApp usage rates in the world.
Comments on transactions Rina Yoneyama The head of Samurai Incubate told TechCrunch: “The great thing about Pricepally is their ability to execute. There are still a lot of difficulties with e-commerce in Nigeria, and a lot of things that work well in other major African cities often don’t work because of a lack of both. .” Hard and soft infrastructure and trust issues. “
“However, Pricepally has worked hard to improve service quality, increase customer satisfaction, earn the trust of customers, and build a high rate of repeat customers. This is evidenced by their healthy unit economics and continued business growth.”