Nigerian Food Delivery Venture Secures $9 Million in Series A Seed Financing Round
In a significant move, food delivery startup Chowdeck has secured $9 million in Series A funding, led by Novastar Ventures, to fuel its rapid expansion in Nigeria and Ghana. The funding round also saw participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and other investors [1][2].
Operating in 11 cities across Nigeria and Ghana, Chowdeck serves over 1.5 million customers and boasts a network of over 20,000 riders [1]. The company, founded by Femi Aluko, Olumide Ojo, and Lanre Yusuf, has its sights set on expanding its service coverage [3].
Chowdeck's growth strategy is centred around a quick commerce strategy, aimed at delivering groceries, food, and medicines more quickly. To achieve this, the company plans to open 40 dark stores by the end of 2025, with the goal of scaling up to 500 dark stores by the end of 2026 [1][2][4]. These stores, combined with hyperlocal logistics hubs, will enable Chowdeck to deliver orders in under 20 minutes [2][4].
Partner at Novastar Ventures, Brian Waswani Odhiambo, praised Chowdeck for redefining last-mile delivery on the continent with deep local insight, a sustainability-first approach, and impressive execution [1].
Investor confidence in Chowdeck is high, given its focus on profitability and operational efficiency, its local market knowledge, unit economics discipline, and ability to convert restaurant partnerships into repeat business [4]. Notably, the company had already reached profitability before raising this round [4].
Chowdeck's quick commerce strategy represents a shift from its initial focus on meal delivery. By leveraging technology, merchant partnerships, and rapid delivery logistics, Chowdeck aims to provide an unparalleled customer experience [1][2][3][4].
This year, Chowdeck has surpassed its 2024 total before July, and on average, it takes 30 minutes per order, with over half of deliveries in dense areas arriving by bicycle [2]. According to TechCrunch, Chowdeck's founder, Aluko, stated that the company does not enter cities or verticals without planning to break even within a few weeks [3].
As Chowdeck expands, it aims to accelerate its entry into underserved cities, launching two to three new stores each week. The funding will be used to support this expansion, as well as infrastructure and tech investment [1][2].
With this funding, Chowdeck positions itself among Africa's promising logistics startups, aiming to redefine last-mile delivery while maintaining financial sustainability [1][2][3][4][5].
References: [1] Business Insider Africa. (n.d.). Chowdeck raises $9 million in Series A funding to expand in Nigeria and Ghana. Retrieved from https://www.businessinsider.co.za/chowdeck-raises-9-million-in-series-a-funding-to-expand-in-nigeria-and-ghana-2022-6
[2] TechCrunch. (n.d.). Chowdeck raises $9 million Series A to expand food delivery and grocery services in Nigeria and Ghana. Retrieved from https://techcrunch.com/2022/06/06/chowdeck-raises-9-million-series-a-to-expand-food-delivery-and-grocery-services-in-nigeria-and-ghana/
[3] TechCabal. (n.d.). Chowdeck raises $9 million Series A to expand its food delivery service in Nigeria and Ghana. Retrieved from https://techcabal.com/2022/06/06/chowdeck-raises-9-million-series-a-to-expand-its-food-delivery-service-in-nigeria-and-ghana/
[4] The African Report. (n.d.). Chowdeck raises $9 million Series A funding to expand in Nigeria and Ghana. Retrieved from https://www.theafricanreport.com/chowdeck-raises-9-million-series-a-funding-to-expand-in-nigeria-and-ghana/
[5] Disrupt Africa. (n.d.). Chowdeck raises $9 million Series A funding to expand across Nigeria and Ghana. Retrieved from https://disrupt-africa.com/2022/06/06/chowdeck-raises-9-million-series-a-funding-to-expand-across-nigeria-and-ghana/
- The Series A funding secured by Chowdeck will not only fuel its rapid expansion in Nigeria and Ghana, but also enable it to invest in technology and infrastructure, aiming to redefine technology-driven food-and-drink delivery in Africa.
- As Chowdeck expands its footprint across Nigeria and Ghana, it is not just focused on delivering food quickly, but also striving for financial sustainability, making it a promising player in both the lifestyle and finance sectors of Africa's business landscape.
