Chowdeck Raises $2.5 million to Strengthen its on-demand Delivery Service in Nigeria

Nigeria’s Chowdeck, an on-demand delivery service, recently received an investment of $2.5 million in seed funding to strengthen its position and boost growth in the country’s thriving delivery market. 

The announcement of this funding round on April 30, 2024 marks a milestone for Chowdeck as it aims to expand its services, broaden its reach and cement its leadership in the Nigerian on demand delivery sector.

This funding round has garnered support from a group of investors, including known names such as Y Combinator and Goodwater Capital. 

Additionally, Chowdeck has caught the attention of angel investors with expertise in technology and delivery industries. 

Among them are Simon Borrero and Juan Pablo Ortega, co founders of Rappi, an American delivery platform. 

Notable figures like Sudeep Ramani (Sportybet) Ayo Arikawe (Thrive Agric) and Karthik Ramakrishnan (Amazon) have also joined Chowdeck’s list of supporters. 

It is worth mentioning that the seed funding was further enhanced by angel investments, from Shola Akinlade and Ezra Olubi, co-founders of Paystack, one of Nigeria’s leading fintech companies.

Chowdeck’s Impressive Growth Trajectory

At this juncture, for Chowdeck, the recent infusion of funding couldn’t have come at a better time. 

Since its inception in 2021, the company has seen growth, with a 140% surge in monthly gross merchandise value (GMV) now surpassing an impressive ₦2.4 billion (approximately $6.5 million). 

This outstanding progress is a testament to Chowdecks focus on efficiency and its strong network. 

With a team of over 6,000 delivery riders serving a user base of, than 500,000 customers in eight major Nigerian cities, Chowdeck continues to make waves in the industry.

A Unique Financial Model Prioritizing Profitability and Rider Satisfaction

Chowdeck stands out due to its model that emphasizes both profits and customer satisfaction, setting it apart from its competitors. 

This is achieved through an approach that includes revenue streams such as restaurant commissions, service fees and competitive pay for riders. 

Chowdeck takes pride in offering compensation packages to its riders, allowing them to earn between ₦100,000 and ₦150,000 weekly (around $270 to $400) comparable to the salaries of ranking government officials in Nigeria. 

By prioritizing rider satisfaction, Chowdecknot onlyt builds a delivery team but also ensures customers receive faster deliveries and reliable service.

Read More: Applications are Open for Kenya’s Seeds for the Future Program

Chowdeck’s Funding: Fueling Expansion and Innovation

With the $2.5 million in funding, Chowdeck is gearing up for an expansion initiative. 

Their goal is to extend their services to cities, catering to a larger audience. 

Moreover, Chowdeck plans to enhance its framework to provide user interactions and streamline delivery processes. 

Part of the funding will also go towards forming partnerships, with eateries and stores enriching the platform’s options and offering customers a broader selection.

A Thriving Market: Capitalizing on Nigeria’s On-Demand Delivery Boom

Chowdeck’s rise to prominence showcases the flourishing demand delivery sector in Nigeria. 

Given that 60% of Nigerians prioritize spending on food in urban regions, there exists a significant need for accessible and trustworthy delivery solutions. 

Although street vendors providing to eat meals are prevalent, digital food delivery services are swiftly garnering favor. 

Forecasts suggest that the Nigerian on demand delivery industry could soar to $2.383 billion by 2024, highlighting opportunities for expansion.

Chowdeck is in a position to take advantage of this growing market thanks to its platform, attractive pricing, and dedication to ensuring customer satisfaction. 

The recent funding injection has provided a boost, enabling Chowdeck to establish itself as a key player in the on-demand delivery sector in Nigeria.

Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @ Siliconafricatech, or Facebook @ Silicon Africa.