Pricepally - Afrikan Heroes

Nigeria’s Pricepally Secures $1.3M Seed Funding to Fuel Expansion and Group Buying Revival

November 19, 2023

Pricepally, a Nigerian online grocery store specializing in fresh produce and packaged food, has successfully secured $1.3 million in seed funding. This funding round was supported by various investors, including Samurai Incubate, a Japanese VC that had also participated in the startup’s 2021 pre-seed round, along with contributions from SOSV, ELEA, Hi2 Global, Chui Ventures, and ex-Unilever executive David Mureithi. Pricepally plans to utilize the funds to expand its operations beyond the three cities it currently serves in Nigeria and to reintroduce group buying, aligning with its commitment to providing affordable food options for consumers.

Pricepally’s business model involves sourcing fresh produce directly from farmers, some of whom are under contract, and obtaining packaged food from manufacturers. The negotiation of prices, combined with short supply chains, allows the startup to maintain affordable supplies. Luther Lawoyin, the CEO, emphasizes the importance of transparency in their operations, stating that the company’s growth and customer retention, with existing buyers contributing over 80% of revenues, are indicative of the value proposition.

The startup, founded in 2019 by Luther Lawoyin, Deepak Bansal, Mosun Lawoyin, and Jummai Abalaka, facilitates same- or next-day delivery through its digital channels, including an app and WhatsApp chatbot. While Pricepally outsources delivery services, it operates a network of fulfillment centers within the cities it serves.

Investors have chosen to inject funds into Pricepally for several compelling reasons. The startup’s commitment to reducing the cost of food, ensuring availability, and maintaining predictable prices aligns with the pressing issue of food insecurity in Nigeria. By eliminating numerous layers of middlemen, Pricepally maintains control over the quality and supply of its products, offering fairer prices to consumers.

Furthermore, the strategic decision to reintroduce group buying is seen as a catalyst for growth. This approach allows retail customers to join forces, unlocking wholesale prices and potentially accelerating Pricepally’s market expansion. The startup’s emphasis on transparency has resulted in steady customer growth and high retention rates, showcasing its ability to address challenges in the Nigerian e-commerce landscape and build trust with consumers.

A Look at Pricepally:

Founded in 2019, Pricepally operates in Nigeria, with its founders being Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO). The startup focuses on three primary cities but aims to expand its reach with the recent funding. Pricepally’s core mission is to provide affordable, fresh produce and packaged food, sourced directly from farmers and manufacturers.

The startup’s unique selling points include a commitment to transparency, visible in its pricing strategies and supply chain management. By leveraging its sourcing strength and negotiating prices with farmers, Pricepally aims to contribute to solving Nigeria’s significant challenge of food insecurity. With a customer base primarily composed of retail buyers, the startup anticipates accelerated growth through the reintroduction of online group buying and the launch of April, a WhatsApp chatbot targeting the mass market in Nigeria. Rena Yoneyama of Samurai Incubate commended Pricepally’s execution ability, emphasizing the company’s success in navigating the challenges of e-commerce in Nigeria through improved service quality and customer trust.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Investors Flock To Nigerian Ecommerce Startup PricePally, Make Six-figure Investment

April 2, 2021

Lagos-based ecommerce startup, PricePally, has raised six-figure funding from Samurai Incubate, Launch Africa Ventures, and Angel Investors. The investment comes as the startup demonstrated strong early growth.

“We are psyched to be backed by the VCs and angels that took part in this round. We have a lot of work ahead and this gives us the pump to execute on our plans,” said Luther Lawoyin, chief executive officer (CEO) of Pricepally.

Luther Lawoyin — Founder, Pricepally. — *Luther Lawoyin is the founder of PricePally.*

Why The Investors Invested

The investment came partly from Japanese Venture Capital firm Samurai Incubate Africa which in January, 2020 announced the launch of their USD 18.250 Mn (JPY 2 Bn) second Africa focused fund — Samurai Africa Fund 2nd General Partnership with target on startups based in Kenya, Nigeria and South Africa. The ticket size for Samurai’s investments ranges between USD 50 K to 500 K for startups developing solutions for FinTech / insureTech, logistics, Medtech / healthcare, retail & e-commerce, agritech, transport & mobility, and entertainment sectors. (Startups still interested in checking out Samurai Incubate Africa may follow this link).

Rena Yoneyama, managing partner at Samurai Incubate, said she was “extremely happy” to be able to support Pricepally. “Inflation has escalated rapidly in Nigeria, influencing food prices, though food is one of the most important necessities for daily life. We believe that Pricepally’s solution would give huge benefits for many people, families and businesses” she added.

Headquartered in Ebene, Mauritius, Launch Africa Ventures is a frontier Pan-African fund solving the significant funding gap in the Seed to Series A bridge funding investment landscape in Africa. The VC offers its portfolio companies equity investments between $100k — $300k. Most investments are made via SAFE or convertible notes. It targets B2B and B2B2C early-stage, technology driven startups with strong management teams solving the most meaningful problems on the continent.

A Look At What The Startup Does

Founded in 2019 by University of Lagos graduate, Luther Lawoyin, on principles of the Shared Economy, Pricepally brings consumers together directly with farmers, manufacturers, and wholesalers to mutual benefit.

“We are solving the problem of the high cost of food and daily needs in urban cities in Africa by aggregating demand and matching them directly with supply from farmers and producers,” the startup noted on its social media account.

A novel feature of the Pricepally platform is a social component which allows users to make purchases as groups for even deeper savings. According to Lawoyin, the site’s customers save at least 15% on the food they buy.

PricePally had about 320 paying users before the virus hit last year — that number shot up to more than 1,000 after the country’s lockdown kicked in on March 30, Lawoyin said.

Currently, Pricepally is available in the Lagos area and offers 1–2 day delivery on orders.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

PricePally ecommerce

Nigerian Startup Pricepally Raises Fund for Expansion

July 20, 2020

Pricepally, the Nigerian group-buying startup founded with the objective to cut out middlemen and save consumers has secured funding from German firm GreenTec Capital Partners to aid efforts aimed at expansion and deepening operations within its primary base. Established in November 2019, Pricepally could be called a child of necessity as it sets a group-buying platform that aggregates consumer food demand and matches it with supplies directly from farmers and wholesalers.

The idea came out of the need to address the negative effect of middlemen in hiking the cost of products and services especially in Nigeria. The startup’s aim is to cut out middlemen and save consumers money by leveraging technology to aggregate demand via a sharing model. Users log in to the website or apps to purchase foods outright or arrange shared purchases, with these items bought from wholesalers or farmers divided accordingly and then shipped to each customer or a group destination.

Having secured an undisclosed amount of investment from the Frankfurt-based GreenTec Capital, which makes small investments in African tech startups but says its real value-add comes from its “company-building” model. The company has invested in a host of African startups, including Kenyan AI startup SuperFluid Labs, Nigerian logistics startup Parcel-it, Ivory Coast-based waste management startup Coliba, and, most recently, Ghanaian retail-tech startup Sumundi.

The startup has seen increased demand created by the global COVID-19 pandemic, and has ambitious plans to re-imagine the food system in Africa by connecting relevant stakeholders through their platform and building out the infrastructure to reach more Nigerians. Currently, Pricepally is available in the Lagos area, and offers one-to-two day delivery on orders.

Speaking on the development, Luther Lawoyin, the CEO of Pricepally said that “at Pricepally we are excited about our collaboration with GreenTec Capital, we see this as a significant step in achieving our vision of a sustainable food system for urban African cities. We are very aware of the huge challenge ahead but we are also very confident in this partnership and we look forward to the future.” Reacting, Maxime Bayen, senior company builder at GreenTec Capital Partners, said his company was thrilled to be supporting a team of “young, brilliant and gender-balanced co-founders” on such an important mission. “At the origin of Pricepally was the deep desire from a group of people to allow households to access essential and quality food at more affordable price,” he said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigerian eCommerce Startup Pricepally Secures Funding From GreenTec

July 7, 2020

As the coronavirus pandemic persists and lives continue to migrate to the internet, GreenTec Capital Partners, one of the leading investors on the African startup ecosystem has invested in Nigerian ecommerce startup Pricepally, an innovative digital Nigerian wholesale platform allowing users to purchase food and other products either individually or as a part of a group.

“When the coronavirus (outbreak) was really picking up in Nigeria, we noticed a spike in our traffic and sales, so we figured that people need help to get their food items and, especially, to avoid the market,” founder Luther Lawoyin told Reuters earlier last month.

Here Is What You Need To Know

Although details of this round of investment was not disclosed, Pricepally looks to re-imagine the food system in Africa, by connecting relevant stakeholders through their platform and building out the infrastructure to reach more Nigerians.

Why The Investor Invested

The latest investment by Greentec Capital Partners is one way the VC firm is diversifying its portfolio in the face of the coronavirus pandemic. The VC firm has previously invested in startups such as Sumundi, Coliba, Amitruck, Kwiks, Ecodudu, among others. Apart from fintech, retail-tech, ecommerce, cleantech or agritech, the VC firm is yet to make a major inroad into healthcare.

According to Maxime Bayen, Senior Company Builder at GreenTec Capital Partners:

“At the origin of Pricepally was the deep desire from a group of people to allow households to access essential and quality food at more affordable price. We, at Greentec Capital, are thrilled to be supporting this team of young, brilliant and gender balanced co-founders on such an important mission !”

*VC presence on the African startup landscape in 2019. Source:-TechCrunch*

A Look At What The Startup Does

Founded in 2019 by former University of Lagos graduate, Luther Lawoyin, on principles of the Shared Economy, Pricepally brings consumers together directly with farmers, manufacturers, and wholesalers to mutual benefit.

“We are solving the problem of the high cost of food and daily needs in urban cities in Africa by aggregating demand and matching them directly with supply from farmers and producers,” the startup noted on its social media account.

A novel feature of the Pricepally platform is a social component which allows users to make purchases as groups for even deeper savings. According to Lawoyin, the site’s customers save at least 15% on the food they buy.

PricePally had about 320 paying users before the virus hit — that number shot up to more than 1,000 after the country’s lockdown kicked in on March 30, Lawoyin said.

Currently, Pricepally is available in the Lagos area and offers 1–2 day delivery on orders.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer