Chowdeck, a Lagos-based food delivery startup that has managed to thrive in a challenging and low-margin market, recently announced a successful Series A funding round of $9 million. The funding, led by Novastar Ventures and with participation from notable investors like Y Combinator, AAIC Investment, and Rebel Fund, will fuel the company’s expansion into more cities in Nigeria and Ghana.
CEO and co-founder Femi Aluko expressed excitement about the funding, emphasizing the company’s vision to become Africa’s leading super app. The investment will support Chowdeck’s growth plans, enabling the expansion into new cities, faster delivery times, increased grocery offerings, and the recruitment of top talent to drive innovation and enhance customer satisfaction.
Established in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck currently operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers with a network of over 20,000 riders. The company’s efficient logistics system ensures an average delivery time of 30 minutes per order, with more than half of deliveries in dense areas made by bicycle.
Despite the challenges faced by other players in the market, Chowdeck has thrived by focusing on local market nuances and building trust with customers through the delivery of both local and international cuisine. In 2024, the value of meals delivered through Chowdeck grew significantly, surpassing the previous year’s total before July of the current year.
The new funding will enable Chowdeck to introduce quick commerce, offering ultra-fast delivery through a network of dark stores and hyperlocal logistics hubs. The company plans to launch 40 dark stores by the end of this year and 500 by the end of 2026, with new stores opening weekly. Notably, Chowdeck has been profitable even before this latest round of funding, emphasizing its strategic approach to entering new markets.
With the successful expansion into Ghana earlier this year, Chowdeck quickly gained traction, handling 1,000 daily orders within three months without paid advertising. The company aims to increase this volume to 5,000 daily orders by the end of September 2025. Additionally, Chowdeck recently acquired Mira, a point-of-sale provider for African food and hospitality businesses, to optimize its operations and position itself as a vertical SaaS-plus-logistics provider for restaurants.
The funding raise for Chowdeck is a significant win for local players in the sector, particularly as foreign brands like Glovo, Bolt Food, and Yango have exited certain markets. Chowdeck’s strategic focus on local insights and execution sets it apart as a leader in redefining last-mile delivery in African cities. Lead investor Novastar Ventures sees tremendous potential in Chowdeck’s approach, highlighting the company’s deep local insight and sustainability-first strategy as key drivers of success.
As the market for food delivery continues to evolve in Africa, Chowdeck remains at the forefront of innovation, poised to capture the shifting consumer behavior towards online food ordering. With a commitment to excellence and a customer-centric approach, Chowdeck is well-positioned to shape the future of logistics in African cities.
