Chowdeck Raises $9 Million Series A to Expand Quick Commerce in Africa
Chowdeck,a Lagos-based food delivery startup known for its profitability in a challenging market,has secured $9 million in Series A funding.the company plans to use the funds to launch a quick commerce strategy and expand its operations into more cities across Nigeria and Ghana.
The investment round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and others. Investors are confident in ChowdeckS ability to leverage local market expertise and execution to transform the food delivery sector into a profitable super app for food, groceries, and essential goods.
“We’re thrilled about this round as it brings us closer to our vision of becoming africa’s number one super app,” said CEO and co-founder Femi Aluko. “This funding will supercharge our growth plans, enabling us to expand into more cities, reduce delivery times, scale our grocery footprint, and attract the best talent to drive innovation and customer satisfaction.”
Founded in October 2021 by Aluko, Rainer Realer, and Lanre Yusuf, Chowdeck currently operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers through a network of over 20,000 riders. The company boasts an average delivery time of 30 minutes per order, with over half of deliveries in dense areas completed by bicycle.
Chowdeck has distinguished itself by focusing on the complexities of local markets – specifically, delivering local meals – to build customer trust, while other major players have exited or scaled back their African operations.
The value of meals delivered through Chowdeck has grown more than sixfold in 2024 compared to the previous year, and the company has already surpassed its 2024 total before July.
The new funding will facilitate the rollout of quick commerce, utilizing a network of dark stores and hyperlocal logistics hubs for ultra-fast delivery. Chowdeck plans to open 40 dark stores by the end of 2024 and 500 by the end of 2026, launching two to three new stores each week. The company previously raised a $2.5 million seed round last year.
Chowdeck Secures $11.2M to Expand Food Delivery Across Africa, Acquires POS provider Mira
Chowdeck, a food delivery startup backed by Y Combinator, has raised $11.2 million in a seed extension round led by Novastar Ventures,with participation from existing investors.This funding will fuel the company’s expansion across Africa, building on its current operations in nigeria and Ghana, and will be bolstered by the recent acquisition of Mira, a point-of-sale (POS) provider for African food and hospitality businesses. https://techcrunch.com/2024/07/29/chowdeck-raises-11-2m-to-expand-food-delivery-across-africa-acquires-pos-provider-mira/
The acquisition of Mira is a strategic move for Chowdeck, integrating real-time inventory and order management tools directly into its platform. This positions Chowdeck as a “vertical SaaS-plus-logistics” provider, offering a comprehensive solution for restaurants beyond just delivery services.
This funding round represents a significant win for local players in the African food delivery market, particularly following the exits of international competitors. Jumia, a prominent e-commerce platform, discontinued its food delivery service in 2023 citing intense competition from well-funded rivals. https://techcrunch.com/2023/12/18/jumia-quit-food-delivery-as-of-deep-pocketed-aggressive-rivals-ceo-says/ Similarly, Bolt Food has withdrawn from nigeria and Ghana, and Glovo has ceased operations in Ghana. https://techcabal.com/2023/11/09/bolt-food-pulls-the-plug-on-nigeria-operations/ https://techpoint.africa/news/glovo-to-shut-down-in-ghana/ Chowdeck is actively targeting these vacated markets.
Chowdeck isn’t alone in serving the African food delivery space. Other local companies,including super apps like Gozem,Yassir (also YC-backed),and Mnt-HALAN,are offering similar services in various African countries. https://techcrunch.com/2022/11/07/yassir-pulls-in-150m-for-its-super-app-led-by-mary-meekers-bond/ https://techcrunch.com/2024/07/26/egypts-mnt-halan-banks-157-5m-gobbles-up-a-fintech-in-turkey-to-expand/
According to Chowdeck CEO Femi Aluko,the African food delivery market is still in its nascent stages,with a growing number of consumers shifting to online ordering for the first time. He notes a generational shift, with young people increasingly accustomed to ordering food online rather than dining in restaurants.
Novastar Ventures partner Brian Waswani Odhiambo highlighted Chowdeck’s potential, stating the company is “building the future of logistics for African cities.” he emphasized the importance of the company’s local insight, commitment to sustainability, and strong execution in redefining last-mile delivery across the continent.