African food delivery service Chowdeck secures $9 million funding to fuel regional growth across the continent
Chowdeck Secures $9 Million Series A Funding for Rapid Expansion
Nigeria's pioneering food delivery startup, Chowdeck, has secured $9 million in a Series A funding round, led by Novastar Ventures. This investment marks a significant milestone for the company as it embarks on an ambitious growth strategy to become a major player in the African food delivery industry.
Founded in October 2021 by Babafemi Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck has grown from 300 users to 1.5 million customers in under four years. The company currently operates in 11 cities and relies on a network of over 20,000 riders.
Chowdeck's success is attributed to its disciplined, profit-focused approach, which sets it apart from global quick commerce players that have raised huge sums before retreating from markets. Brian Waswani Odhiambo, partner at lead investor Novastar Ventures, believes Chowdeck is redefining last-mile delivery on the continent with its deep local insight, sustainability-first approach, and impressive execution.
The new funding will likely be used to expand into more cities, reduce delivery times, and scale Chowdeck's grocery footprint. Chowdeck intends to open 40 such stores by the end of this year and 500 by 2026. The strategy includes quick commerce, using dark stores and hyperlocal logistics hubs.
Chowdeck's growth strategy also focuses on enhancing delivery speeds by leveraging tech-enabled logistics, including a strong focus on sustainability (e.g., many deliveries by bicycle). The company aims to grow daily order volumes from 1,000 to a targeted 5,000 by September 2025.
In addition to expansion, Chowdeck has acquired Mira, a point-of-sale provider for the food and hospitality sector, to improve merchant tools and customer experience. This move is expected to give Chowdeck an edge over competitors in the market.
The Series A round also reflects strong investor confidence in Chowdeck’s local market expertise and scalable business model in a challenging African food delivery sector. Other participants in the funding round include Y Combinator and others.
Chowdeck's entry into Ghana in May 2025 further strengthens its position in the market. The company doesn't expand into any city without a plan to break even quickly in each market before expansion. This approach, combined with its locally tailored model, could help Chowdeck capture market share and avoid costly pitfalls that have tripped up others.
The funding and expansion are a major win for local players in the highly competitive industry, as several foreign competitors have scaled back operations in West Africa. With this new funding, Chowdeck is further strengthening its position to capture the African food delivery market.
[1] Chowdeck raises $9 million Series A funding [2] Chowdeck acquires Mira to boost merchant tools and customer experience [3] Chowdeck's growth strategy: Expansion, sustainability, and innovation [4] Chowdeck: Nigeria's first food delivery startup poised for growth [5] Chowdeck's Series A funding: A boost for local players in the African food delivery industry
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