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PricePally

Digital food cooperative for African cities.

Nigeria
Market: Food industry
Stage of the project: Operating business

Date of last change: 16.09.2020
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Idea

Pricepally is a digital food cooperative that enables people to share bulk of food among a group or buy food in bulk directly from farmers and wholesalers, making it cheaper and fresher than retail.
Pricepally brings the benefits of food wholesale and retail under a single digital platform accessible by B2C and B2B customers

Current Status

Since inception (10 months ago), Pricepally’s operations started with positive cash flows. Pricepally started operating in November 2019 with $1,020 sales revenue (B2B only) and reached in July $14,220 sales revenue (B2B and B2C). This $5K-6K monthly increase in Gross Merchandise Volume (sales) approximately represents a 32% month-on-month growth this year, and over 25% MOM growth since inception. Not only are we resilient to the COVID 19 pandemic but actually growing significantly during it. The company shows an average 10-15% profit, depending on the seasonality of food items.

Market

Pricepally current primary target is Nigerian food consumers. Pricepally focuses more specifically on Lagos as a serviceable market, which represents 11% of total national food spending. Moreover, judging by buyers’ profiles, customers can be segmented into low and middle income individuals and families alike.
Market size:
The total national food expenditure in Nigeria is $58.8 billion. Considering Lagos 21 million inhabitants (11% of total national food spending), it represents itself as a strong market opportunity with a total addressable market of $6.1 billion. Furthermore, given that 68% of Lagosians use the internet, our serviceable addressable market (SAM) becomes $4.2 billion.

Problem or Opportunity

The price of food is increasingly high in African cities. According to USDA data, Nigerians spend over 56% of their monthly income on food, one of the highest income to food ratio in the world, there are other African countries with similar statistics 56.4%; Kenya 46.7%; Cameroon 45.6%; and Algeria 42.5%. There is a problem in the food system for cities in Africa.

Solution (product or service)

We aggregate consumer demand (bulk orders) via our web and app platform and then match it directly with supply from farmers and wholesalers. We leverage the aggregation of demand volume to get deep discounts from producers and suppliers, which translates into customer savings. Moreover, through its door-to-door delivery service, Pricepally not only alleviates logistics hurdles but also transportation costs by nearly half.

Competitors

Pricepally competitors are Twiga Foods (providing they expand to Nigeria) and Farmcrowdy Aggregator (in Nigeria). The 1st is a B2B supply platform for SME vendors in African urban markets. The 2nd provides smallholder farmers with access to markets via a tech-powered network of agro commodity aggregation centres.

Advantages or differentiators

Pricepally sets itself apart from competition by providing a platform for social shopping. In fact, the app enables the aggregation of both suppliers' offers and users' demand —B2B, B2C— to organize a direct, cost-effective distribution channel between them. Hence, eliminating middlemen, optimizing supply chain and reducing food prices. As the startup aggregates more demand , they plan on directing it to supply from partner smallholder farmers and wholesalers, and use a contract farming partnership with small holder farmers especially for non perishables. Their vision is to multiply this model across African cities using the platform to connect all relevant stakeholders in the ecosystem for the benefit of everyone.

Finance

We charge a commission on every transaction

Invested in previous rounds, $

Business model

Our model is direct to consumer via e-commerce, we acquire customers via e-commerce and inbuilt referral program

Money will be spent on

Technology
Marketing and advertising
Equipment
Storage and space

Team or Management

Risks

Food supply chain break down, logistics and distribution are key important aspects of the business that pose the most threats in term of risks

Incubation/Acceleration programs accomplishment

MIT venture scaling bootcamp Boston USA
Westerwelle young founders program in Germany
Social and inclusive business camp
Ayada lab accelerator program

Won the competition and other awards

Lagos state grant for innovative businesses
Foodtech500 awards by Forward food USA

Photos

Photo 1 - Digital food cooperative for African cities.

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video