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Nigerian profitable food delivery Chowdeck lands $9M from Novastar, Y Combinator
Chowdeck, a Lagos-based food delivery startup, secured $9M in Series A funding led by Novastar and Y Combinator. This investment aims to expand its quick commerce strategy across Nigeria and Ghana, building on its profitable operations since 2021. With plans for new dark stores and a goal of processing 5,000 daily orders by September 2025, Chowdeck is positioning itself as a major player in Africa's food delivery landscape.
Key points
- Chowdeck raised $9M to launch quick commerce and expand operations.
- The funding round was led by Novastar Ventures and included participation from Y Combinator.
- Chowdeck operates in 11 cities in Nigeria and Ghana, serving 1.5M customers.
- The startup has remained profitable by addressing local market needs.
- Plans to reduce delivery times and open 40 new dark stores by year-end, scaling to 500 by 2026.
- Increased meal delivery value over sixfold in 2024 compared to the previous year.
Why it matters
- Chowdeck's success contrasts with other delivery platforms in Africa that have struggled or exited.
- The rise of super apps is a growing trend, aligning with shifts in consumer behavior towards online food ordering.
- The increase in local demand for delivery services showcases a shift in the African market towards faster, reliable logistics.
Chowdeck's funding signifies a pivotal moment in Africa's food delivery sector, leveraging local insights to create a profitable super app amidst competitive challenges, paving the way for significant growth and innovation ahead.