Nigerian Business Chowdeck Secures $9 Million Funding, Expanding Service to 1.5 Million Clients in 11 Cities Nationwide
Chowdeck, a Nigerian food delivery and grocery platform, has secured a $9 million Series A funding round, marking a significant step forward in its journey to become Africa's leading super app for food, groceries, and everyday essentials.
The funding round, led by Novastar Ventures, also saw participation from Y Combinator and other notable investors such as Palm Drive, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, and HoaQ. This infusion of capital will be used to expand Chowdeck's presence beyond its current 11 cities in Nigeria and into Ghana, launch a quick commerce strategy, scale its grocery footprint, and open around 40 new dark stores in Nigeria before the end of 2025.
Chowdeck's quick commerce strategy is centered around leveraging small warehouses, or dark stores, located close to customers to drastically cut delivery times, particularly for groceries and pharmacies. The aim is to reduce delivery times to 20 minutes or less, down from the current average of 30 minutes.
The platform also plans to continue its Chowpass monthly subscription service, which offers customers perks such as free delivery on eligible orders and reduced fees to enhance customer loyalty. Moreover, Chowdeck is committed to maintaining a sustainable delivery model, with over half of deliveries in dense urban areas made by bicycle, reducing costs and environmental impact.
Technology integration will also play a crucial role in Chowdeck's growth. The company will focus on smart logistics, real-time performance tools, inventory and payment management to improve merchant operation efficiency and customer experience.
Chowdeck's CEO, Femi Aluko, envisions the platform becoming Africa’s number one super app for food, groceries, and everyday essentials by growing and innovating its service offerings and operational network.
Chowdeck attributes its success to its homegrown platform designed for the local market. The company expressed gratitude to its customers, riders, vendors, and team for driving its growth. However, the exact amount raised in this funding round has not been revealed.
With this renewed focus and energy, Chowdeck is poised to take its services to more cities, offer faster delivery, and scale its operations, all while maintaining a commitment to innovation and sustainability. It's now day 1 for Chowdeck, as it embarks on this exciting new phase of its journey.
Startups such as Chowdeck are increasingly venturing into the field of finance, seeking financial backing to expand their business and leverage technology for growth. With this latest Series A funding round, Chowdeck aims to start technology integration, focusing on smart logistics, real-time performance tools, inventory, and payment management to improve both merchant operation efficiency and customer experience.
