Nigerian Food Startup Chowdeck Secures $9M Funding from Novastar, YC
▼ Summary
– Chowdeck, a profitable Lagos-based food delivery startup, raised $9 million in Series A funding to expand its quick commerce strategy and operations in Nigeria and Ghana.
– The funding round was led by Novastar Ventures, with participation from investors like Y Combinator, betting on Chowdeck’s local market expertise and execution in a tough sector.
– Chowdeck operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers with a 30-minute average delivery time and plans to open 500 dark stores by 2026.
– Unlike competitors, Chowdeck has remained profitable by focusing on local market complexity, delivering local meals, and breaking even quickly in new markets.
– The company acquired Mira, a point-of-sale provider, to optimize operations and position itself as a vertical SaaS-plus-logistics provider for restaurants.
Chowdeck, a Nigerian food delivery platform, has secured $9 million in Series A funding to accelerate its expansion across West Africa and launch ultra-fast grocery delivery services. The investment round was spearheaded by Novastar Ventures, with backing from Y Combinator and several other prominent venture capital firms, signaling strong confidence in the startup’s unique approach to Africa’s challenging logistics landscape.
Since its launch in 2021, Chowdeck has carved out a profitable niche in Nigeria and Ghana by focusing on hyperlocal meal delivery, a segment often overlooked by global competitors. The company now serves 1.5 million customers across 11 cities, leveraging a fleet of over 20,000 riders to maintain an average delivery time of just 30 minutes. Unlike many rivals that have struggled with sustainability, Chowdeck has maintained profitability by carefully selecting markets where it can break even within weeks.
The fresh capital will fuel the company’s ambitious quick commerce strategy, which involves setting up a network of dark stores, small, strategically located warehouses that enable lightning-fast deliveries. Chowdeck plans to open 40 dark stores by the end of 2024 and scale to 500 by 2026, aiming to dominate the grocery and essentials market alongside its existing food delivery operations.
Femi Aluko, Chowdeck’s CEO and co-founder, emphasized the company’s vision to become Africa’s leading super app, integrating food, groceries, and logistics into a seamless platform. “This funding allows us to deepen our presence in existing markets while expanding into new cities,” he said. “We’re also investing in talent and technology to enhance efficiency and customer satisfaction.”
The startup’s recent acquisition of Mira, a point-of-sale software provider, further strengthens its position as a vertically integrated logistics and SaaS player for restaurants and retailers. This move aligns with Chowdeck’s strategy to optimize supply chains and improve real-time inventory management.
While global players like Glovo and Bolt Food have scaled back operations in Africa, Chowdeck’s success highlights the importance of local market expertise. The company’s ability to deliver traditional African dishes, a logistically complex task, has earned strong customer loyalty. In Ghana, where it launched just three months ago, Chowdeck is already processing 1,000 daily orders without paid marketing, a testament to pent-up demand for reliable, locally tailored services.
Brian Waswani Odhiambo, a partner at Novastar Ventures, praised Chowdeck’s execution and sustainability-focused model. “They’re not just building a delivery platform, they’re redefining urban logistics in Africa,” he said. With shifting consumer habits and a young, digitally native population, Chowdeck is well-positioned to lead the continent’s rapidly evolving quick commerce sector.
Image Credits: Chowdeck
(Source: TechCrunch)
