Zambia-based grocery delivery startup Lusaka Grocery Delivery company has raised $38.5k in pre-seed funding round to enable it scale its services. The funding came from Amano Capital, a Lusaka-based investment firm which raises capital for Southern African tech startup companies. 

Why The Investors Invested

Amano Capital is an dual purpose active advisory-brokerage service that specialises in the Zambian startups and medium scale market.

Apart from investing, the VC offers active advisory services in incubation, mentoring and monitoring of startups as well as general brokerage services such as marketing, offering and aftermarket services. 

One of the main issues with the Zambian e-commerce market is the lack of adequate access to the internet and an understanding of how to use online applications. While over 80% of Zambians have phones only 14% admitted to actively using the internet. The remaining 70% stated they did not understand how the internet works. Determined to bridge this divide, the company has looked for alternate ways to build a loyal following while maintaining its brand purpose. Having only started in April this year, it looking to break K100,000 weekly sales by the end of the year. 

A Look At What The Startup Does

Founded in April this year by the University of Liverpool graduate, Ngao Mutambo, Lusaka Grocery Delivery is an online grocery delivery service. 

“People tend to think that in order to start a new business they have to come up with something new and dazzling, but that’s a myth — and it’s often propagated by fear,” says Mutambo. “The companies that I really admire the most are the ones that have a deep visceral understanding of why people use their service, and they figure out ways of making money that are completely consistent with how people are feeling and what they are doing at the time. Understanding this was crucial in becoming relevant as the CEO of Lusaka Grocery Delivery Company. Our vision was to consistently meet consumers needs regardless of the economic, social or environmental obstacles that may come with that! Spearheading this company at a relatively young age, I have 4 key lessons: Entrepreneurship is a marathon, Ensure there’s demand for the product, Understand your target market and Solve a problem. This has helped ground me on how best to effectively navigate this market regardless on how old I am, my age is not the measure of my success but my hard work is!”

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The startup’s flagship product section is named ‘Proudly Zambian’. Part of the offerings will be products which tend not to be available in the local stores as they are being produced by smaller manufacturers. The company will promote a section of exclusively Zambian traditional foods such as Chikanda, Chiwawa and dried fish to name a few. This is an exciting feature as it looks to commercialise key elements of different Zambian traditional foods.

The Zambian Remittance market is valued at nearly $200 million dollars per year with 85% going towards family support. Having noted this trend LGD built its app for the purpose of ensuring members of the diaspora can safely purchase grocery supplies and ensure the money is spent appropriately. Nearly 70% of all clientele is currently based in the diaspora and is vital to the company’s success.

“The strategy to drive up sales in the diaspora market to then trickle down into the domestic target market. This is what energized my team the most. Changing customers habits requires patience so utilising a customer base that are comfortable in using the online shopping market will be a strong factor to future scalability”

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