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

Chowdeck, a food delivery startup based in Lagos, has navigated a challenging low-margin environment and recently raised $9 million in Series A funding. This capital will support the launch of a rapid commerce program and facilitate 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 express confidence in the team’s ability to leverage local insights and effective strategies to transform this notoriously difficult market into a flourishing super app for food, groceries, and everyday essentials.

“This funding represents a significant milestone in our vision to become Africa’s leading super app,” said CEO and co-founder Femi Aluko. “The investment will accelerate our growth, allowing us to reach additional cities, reduce delivery times, enhance our grocery offerings, and attract top talent to foster innovation and improve customer satisfaction.”

Founded in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck currently serves 1.5 million customers across 11 cities in Nigeria and Ghana, supported by a network of over 20,000 riders. Their logistics framework ensures deliveries within an average of 30 minutes, with many urban deliveries executed via bicycles.

While many major competitors have scaled back or exited the African market, Chowdeck has adeptly tackled local challenges by focusing on local cuisine, building a solid foundation of customer trust.

In 2024, Chowdeck noted its meal delivery value surge over sixfold compared to the previous year, asserting it had surpassed its total delivery amount for 2024 before the halfway mark of the year.

The 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 plan to establish 40 dark stores by the end of the year, with a target of reaching a total of 500 by the end of 2026, aiming to launch two to three new stores weekly. Last year, Chowdeck secured $2.5 million in seed funding.

In the face of intense global competition in the food delivery market, successful models have contributed to the rise of major players like DoorDash.

Conversely, rapid commerce has proven a capital-intensive undertaking in many regions. European startups like Gorillas and Getir have encountered substantial losses prior to scaling down operations or merging. In India, companies such as Blinkit, Zepto, and Swiggy have experienced mixed results concerning profitability through this model.

Chowdeck has remained profitable even prior to this funding round, with Aluko emphasizing that the company avoids entering new markets without a structured plan to achieve break-even within weeks.

For example, the food delivery service launched operations in nearby Ghana in May. Within just three months, it began handling 1,000 daily orders without any paid advertising, primarily fueled by strong demand for both local and international dishes. The company aims to increase that to 5,000 daily orders by the end of September 2025.

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

Additionally, within these operations, they will leverage software. In June, the YC-backed company acquired Mira, a point-of-sale solution tailored for African food and hospitality businesses. Mira’s tools enable real-time tracking of inventory and orders; their integration will streamline Chowdeck’s workflows, positioning the company as a vertical SaaS-plus-logistics solution for restaurants.

Chowdeck’s successful fundraising is a significant achievement for local players following Jumia’s exit, paving the way for foreign brands like Glovo, Bolt Food, and Yango. Nonetheless, many of these firms have also retreated from specific markets, including Nigeria and Ghana, where Chowdeck is currently making notable advancements.

Regional competitors such as Gozem, YC-backed Yassir, and MNT-Halan are also entering the space, offering food delivery services across various African markets.

“The market is still in its infancy,” Aluko noted. “Consumer behaviors are shifting online for the first time. A new generation is emerging that orders food without ever stepping into the restaurants or markets listed on our platform.”

For lead investor Novastar Ventures, the focus lies on robust execution and local expertise. “Chowdeck is pioneering the transformation of logistics within African cities,” said partner Brian Waswani Odhiambo. “With in-depth local insights, a sustainability-oriented approach, and unmatched execution, it is redefining last-mile delivery across the continent.”