Chowdeck, a food delivery startup based in Lagos, has secured $9 million in Series A funding to implement a quick commerce strategy and expand its presence in Nigeria and Ghana. Despite operating in a challenging and low-margin industry, the startup has maintained profitability.
This equity round was led by Novastar Ventures with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, among others. The investors believe in the team’s capacity to leverage local market knowledge and execution skills to turn a challenging sector into a profitable super app for food, groceries, and essentials.
CEO and co-founder Femi Aluko expressed excitement about the funding, stating it brings them closer to their vision of becoming Africa’s leading super app. The funding will support expansion plans, reduce delivery times, enhance their grocery footprint, and help attract top talent for innovation and customer satisfaction.
Founded by Aluko, Olumide Ojo, and Lanre Yusuf in October 2021, Chowdeck currently operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers with a network of over 20,000 riders. The logistics network averages 30 minutes per order, with more than half of the deliveries in dense areas being made by bicycle.
Chowdeck has embraced the complexities of local markets by delivering local meals, which poses operational challenges, thereby building trust with customers, while other major players have exited or scaled back their operations in Africa.
In 2024, Chowdeck saw its meal delivery value rise more than sixfold compared to the previous year, surpassing its 2024 total before July of the current year.
The new funding will help Chowdeck launch quick commerce, with ultra-fast delivery supported by a network of dark stores and hyperlocal logistics hubs. The plan is to open 40 dark stores by the year-end and 500 by 2026, with two to three new stores launching weekly. Previously, Chowdeck raised a $2.5 million seed round last year.
Globally, food delivery is a competitive business with potential for growth evident from success stories like DoorDash. However, quick commerce has been an expensive venture in most markets. In Europe, companies like Gorillas and Getir encountered high costs leading to consolidation or withdrawal. In India, platforms such as Blinkit, Zepto, and Swiggy have seen varied success in reaching profitability with this model.
Chowdeck has remained profitable even before this funding round. According to Aluko, the company approaches new cities or verticals with plans to achieve breakeven within weeks.
For example, after Chowdeck entered Ghana in May, it achieved 1,000 daily orders within three months without any advertising, attributed to unmet demand for a service offering both local favorites and international cuisines. Chowdeck aims to reach 5,000 daily orders by the end of September 2025.
Aluko mentioned that the company plans to adopt the same approach for dark stores, complementing its restaurant and grocery delivery services.
Another area supporting their operations will be software. In June, the YC-backed company acquired Mira, a point-of-sale provider for African food and hospitality businesses. Mira’s tools help manage inventory and orders in real time, optimizing Chowdeck’s operations and establishing it as a SaaS-plus-logistics provider for restaurants.
Chowdeck’s