In October, the National Bureau of Statistics reported that Nigeria experienced a 31.52% food inflation rate, marking a 7.80% surge from the corresponding period in the previous year.
The bureau attributed the year-on-year increase in food inflation to heightened prices of items such as bread and cereals, oil and fat, potatoes, yam, and other tubers, fish, fruit, meat, and vegetables, as well as milk, cheese, and eggs.
In 2019, Luther Lawoyin, Deepak Bansal, Mosun Lawoyin, and Jummai Abalaka co-founded PricePally to minimise food costs, ensure consistent availability, and maintain predictable prices in the face of shortages and escalating prices aggravated by increasing inflation.
“We have more control over quality and supply because we have specific farmers supplying specific products,” says Luther Lawoyin, who serves as CEO. “We also carry out price research across local markets and our prices are a lot fairer and that’s just 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.”
Amidst the deepening food security crises in Nigeria, exacerbated by conflicts between farmers and herders, fuel subsidy issues, and various challenges, the Nigerian e-commerce startup PricePally has raised $1.3 million in a seed round to double down on its mission.
This round was backed by Samurai Incubate, SOSV, ELEA, Hi2 Global, Chui Ventures, and former Unilever executive David Mureithi.
“The great thing about Pricepally is their execution ability. There are still many difficulties with e-commerce in Nigeria, and many things that work normally in other major African cities often do not work due to a lack of both hard and soft infrastructure and trust issues,” says, Rena Yoneyama, managing partner at Samurai Incubate.
With this funding, PricePally intends to expand beyond its current markets—Abuja, Lagos and PortHarcourt. It also intends to reintroduce its group-buying options especially ahead of the Yuletide.
PricePally ensures delivery of ordered produce, either on the same day or the next day, through its digital channels, which include the app and a WhatsApp chatbot. While maintaining a network of fulfilment centers within the three cities it presently serves, the startup opts to outsource its delivery services.