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Chowdeck Raises $9 Million in Series A Funding to Fuel Commerce Across Nigeria and Ghana
Chowdeck raises $9 million in Series A funding to fuel commerce across Nigeria and Ghana. This is a big deal for the Nigerian food delivery startup, as it plans to grow faster and bring its services to more cities in these two countries.
Chowdeck raises $9 million in funding with the help of investors like Novastar Ventures and Y Combinator. Other supporters include HoaQ, True Culture Funds, and well-known angel investors like Shola Akinlade and Ezra Olubi, who co-founded Paystack. This new money will help Chowdeck reach more customers and improve how it serves them.
The company’s CEO, Femi Aluko, is excited about the funding. He says it will help Chowdeck grow quickly, offer faster deliveries, and expand its grocery deliveries. He also plans to hire talented people who can create new ideas and make customers happy. Simply put, this $9 million is exactly what Chowdeck needs to fuel commerce across Nigeria and Ghana.
Chowdeck is shifting from just food delivery to what is called “quick commerce.” This means delivering groceries, essentials, and other goods in a flash—sometimes in just 15 minutes! To do this, Chowdeck will open 40 “dark stores” in Nigeria by the end of the year. These are small warehouses where items are kept close to customers, so deliveries can be done faster than before. Part of the $9 million will also be used to improve technology that helps track orders and manage inventory better.
Right now, Chowdeck serves 11 cities in Nigeria and Ghana. Most of its deliveries (about 80%) happen in Lagos, but it also works in places like Abuja, Port Harcourt, and Accra. With the new funding, the company wants to reach into more cities that don’t have many delivery options yet. Since Chowdeck entered Ghana in 2024, it has seen strong growth there and hopes to keep building in that market.
The startup has done really well so far. It serves around 1.5 million customers and has 20,000 delivery riders working for it. In March 2024 alone, the value of meals delivered hit over 2 million dollars. Many customers love Chowdeck’s subscription service called Chowpass, with 70% of users signing up again every month.
Chowdeck started in October 2021 with founders Femi Aluko, Lanre Yusuf, and Olumide Ojo. They wanted to change food delivery in Nigeria by making it much faster and more reliable. Inspired by delivery services they saw in cities like Dubai, they built a service where delivery times average just 30 minutes. Partnering with big names like Shoprite, Chicken Republic, and KFC helped Chowdeck become a trusted brand.
Before raising this $9 million, Chowdeck had raised $2.5 million in April 2024 during a seed funding round. Recently, they bought a company called Mira that helps food businesses with managing sales and inventory. This means Chowdeck is not just about delivering food but also helping small restaurants run better.
Of course, delivering in Nigeria comes with challenges like fuel shortages, bad roads, and heavy traffic. Many delivery companies left Nigeria in 2023, but Chowdeck stays strong by focusing on making each delivery profitable, even if that means charging a bit more. CEO Aluko says, “We’re not the cheapest, but we give the best convenience.”
Chowdeck also treats their riders well. Some make as much as ₦400,000 a month, which is much more than the country’s minimum wage. This fair pay helps keep riders motivated and reliable.
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Looking ahead, Chowdeck wants to do more than food. By combining Mira’s technology and its quick commerce plan, it aims to deliver groceries, medicines, and many other essentials fast. With more warehouses and 10,000 riders already on the road, Chowdeck looks set to lead the on-demand delivery market in Africa.
Investors like Shola Akinlade see Chowdeck as a smart and innovative company solving important problems in Africa’s delivery world. Thanks to the $9 million raised in Series A funding, Chowdeck is ready to expand even more, improve technology, and fuel commerce across Nigeria and Ghana with faster and better delivery for millions of people.
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