Zambian startup Lusaka Grocery Delivery raises US$38.5k in pre-seed funding round

Image: The Best of Zambia

ZAMBIA – Zambia based women-led grocery delivery startup Lusaka Grocery Delivery (LDG) company has raised $38.5k in pre-seed funding round to enable it to scale its services.

The funding came from Amano Capital, a Lusaka-based investment firm which raises capital for Southern African tech startup companies. 

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

Zambian e-commerce market is characterized by 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 while 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 and is looking to break US$4,975 weekly sales by the end of the year. 

“People tend to think that 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. 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,’ says Mutambo.

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 of how old I am, my age is not the measure of my success, but my hard work is”

Ngao Mutambo – CEO, Lusaka Grocery Delivery

The startup’s flagship product section is named ‘Proudly Zambian’ and 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 and exciting feature 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” Mutambo concludes.

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

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

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