Chowdeck, Nigerian Food Delivery Service, Raises $9M in Funding from Novastar and Y Combinator

Chowdeck, a food delivery startup based in Lagos, has effectively navigated a challenging low-margin industry and recently raised $9 million in Series A funding. This capital will facilitate the launch of a rapid commerce initiative and support its expansion into more cities across Nigeria and Ghana.

The funding round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and others. Investors are hopeful about the team’s ability to leverage local insights and effective strategies to transform this challenging market into a bustling super app for food, groceries, and other everyday essentials.

“This investment signifies a critical step in our goal to become Africa’s leading super app,” said CEO and co-founder Femi Aluko. “It will accelerate our growth, enabling us to reach more cities, shorten delivery times, broaden our grocery offerings, and attract top talent to foster innovation and enhance customer satisfaction.”

Founded in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck currently caters to 1.5 million users in 11 cities across Nigeria and Ghana, supported by a team of over 20,000 riders. Their logistics infrastructure ensures average delivery times of 30 minutes, with many deliveries in urban areas handled by bicycles.

While many prominent competitors have reduced operations or left the African market, Chowdeck has successfully tackled local challenges by emphasizing local cuisine and building a strong customer trust foundation.

In 2024, Chowdeck announced a more than sixfold increase in meal delivery revenue compared to the previous year, claiming to have surpassed its total delivery volume for 2024 before the year reached its midpoint.

This new funding will empower Chowdeck to implement rapid commerce with ultra-fast delivery, supported by a network of dark stores and hyperlocal logistics centers. They aim to establish 40 dark stores by the end of the year, with a target of 500 by 2026, planning to open two to three stores weekly. Last year, Chowdeck secured $2.5 million in seed funding.

As competition within the food delivery sector intensifies globally, successful business models have given rise to major companies such as DoorDash.

Conversely, rapid commerce has proven to be a costly endeavor in various regions. European startups like Gorillas and Getir have reported substantial losses before downsizing or merging, while Indian companies, including Blinkit, Zepto, and Swiggy, have had mixed results regarding profitability with this strategy.

Chowdeck has achieved profitability even before this funding round, with Aluko emphasizing the company’s approach of carefully planning market entries to achieve break-even shortly after launching.

For example, the food delivery service began operations in Ghana in May and, within three months, was processing 1,000 daily orders without any paid marketing, driven largely by a high demand for both local and international cuisines. The company aims to increase this figure to 5,000 daily orders by September 2025.

Aluko noted that Chowdeck plans to replicate its successful dark store strategy to enhance its restaurant and grocery delivery services.

Additionally, the company will employ software solutions in these operations. In June, the YC-backed company acquired Mira, a point-of-sale solution developed specifically for African food and hospitality businesses. Mira’s tools enable real-time inventory and order tracking; its integration is expected to optimize Chowdeck’s workflows, positioning the company as a vertical SaaS-plus-logistics provider for restaurants.

Chowdeck’s successful funding round is a significant milestone for local players following Jumia’s retreat, making way for foreign entrants like Glovo, Bolt Food, and Yango. However, many of these companies have also scaled back operations in certain markets, including Nigeria and Ghana, where Chowdeck is currently gaining momentum.

Regional competitors such as Gozem, YC-backed Yassir, and MNT-Halan are also making their mark in the sector, offering food delivery services across various African markets.

“The market is still in its infancy,” Aluko observed. “Consumer behavior is shifting online for the first time, with a new generation emerging that orders food without ever visiting the restaurants or markets listed on our platform.”

For lead investor Novastar Ventures, the focus is on strong execution and local expertise. “Chowdeck is at the forefront of transforming logistics in African cities,” remarked partner Brian Waswani Odhiambo. “With deep local insights, a sustainability-driven approach, and excellent execution, it is revolutionizing last-mile delivery across the continent.”