Chowdeck secures $9 million Series A funding to fuel quick commerce across Nigeria and Ghana

Chowdeck, a Nigerian food delivery startup, has raised $9 million in a new funding round. The investment will fuel its ambitious quick commerce strategy and support further expansion into more cities in Nigeria and Ghana.

The Series A round was led by Novastar Ventures and Y Combinator, with participation from other investors, including HoaQ, True Culture Funds, and prominent angel investors like Paystack co-founders Shola Akinlade and Ezra Olubi. This milestone follows the startup’s rapid growth and positions it as a key player in Africa’s evolving on-demand delivery market.

Commenting on the new round, CEO Femi Aluko says: “We’re thrilled about this round as it brings us closer to our vision of becoming Africa’s number one super app.”

“This funding will supercharge our growth plans, enabling us to expand into more cities, reduce delivery times, scale our grocery footprint, and attract the best talent to drive innovation and customer satisfaction,” he added.

Chowdeck is pivoting to quick commerce, aiming to deliver goods beyond food in record time. 

The company plans to launch 40 dark stores across Nigeria by year-end. These localised warehouses will enable faster delivery of groceries, essentials, and other products. With a focus on 15-minute deliveries, it is tapping into the growing demand for instant gratification in African markets. This move aligns with global trends, where quick commerce is reshaping consumer expectations.

Part of the $9 million will also go into enhancing its technological infrastructure. 

The startup aims to streamline operations and improve customer experience. By integrating advanced logistics and inventory management systems, it seeks to maintain its edge in efficiency. 

Chowdeck is scaling across Nigeria and Ghana

Chowdeck currently operates in 11 cities across Nigeria and Ghana. Lagos accounts for 80% of its delivery volume, with other cities like Abuja, Port Harcourt, and Accra contributing the rest. The fresh capital will support expansion into new urban centres, targeting underserved markets. Ghana’s market, in particular, shows strong potential after its successful entry in 2024. 

The startup’s growth metrics are impressive. It serves 1.5 million customers and employs 20,000 riders. 

In 2024, the value of meals delivered through Chowdeck grew sixfold, reaching a gross merchandise value (GMV) of over N2.4 billion ($2 million) in March alone. With 70% of Chowpass subscribers renewing monthly, customer loyalty is a key driver of its success.

Founded in October 2021, Chowdeck has disrupted Nigeria’s food delivery scene. Inspired by fast delivery services in Dubai, Aluko and co-founders Lanre Yusuf and Olumide Ojo built a platform prioritising speed and reliability. 

The startup’s hyperlocal model ensures an average delivery time of 30 minutes, outpacing competitors. Partnerships with major brands like Shoprite, Chicken Republic, and KFC have strengthened its market position.

Chowdeck’s earlier $2.5 million seed round in April 2024, backed by Y Combinator and Goodwater Capital, laid the groundwork for its current success. 

The company has since acquired Mira, a restaurant management and POS startup, to tackle operational bottlenecks like inventory mismanagement. This acquisition enhances Chowdeck’s ability to serve small-to-medium food businesses, positioning it as a comprehensive tech partner.

Nigeria’s delivery market is not without hurdles. Fuel scarcity, poor road infrastructure, and urban traffic pose significant challenges. Unlike competitors like Jumia Food and Bolt Food, which exited Nigeria in 2023, Chowdeck thrives by focusing on sustainable unit economics. It charges higher delivery fees to ensure profitability, a strategy Aluko defends as key to long-term success. “We’re not the cheapest, but we deliver unmatched convenience,” he said.

Rider compensation is another differentiator. Some Chowdeck riders earn up to ₦400,000 ($343) monthly, far exceeding Nigeria’s minimum wage. This approach attracts top talent and ensures reliable service. 

Aluko noted, “We pay riders what a delivery is worth, aligning with our commitment to fairness and profitability.”

Chowdeck’s vision extends beyond food delivery. By integrating Mira’s POS tools, including hardware and sales intelligence, the company aims to empower restaurants and retailers. Its quick commerce strategy will cater to diverse consumer needs, from groceries to pharmaceuticals. Strategic partnerships and a growing network of 10,000 delivery riders position Chowdeck to dominate Africa’s on-demand market.

Investors are optimistic about Chowdeck’s trajectory. Shola Akinlade praised the team’s innovation, stating, “Chowdeck embodies excellence and is solving a critical need in Africa’s delivery space.” 

June Angelides of Levare Ventures highlighted the startup’s ability to address complex logistical challenges, noting its potential to scale beyond Nigeria and Ghana.

With $9 million in its war chest, Chowdeck is poised to redefine quick commerce in Africa. 

Its focus on technology, partnerships, and rider welfare sets it apart in a competitive market. As the company rolls out dark stores and expands its footprint, it aims to deliver unparalleled convenience to millions.