Chowdeck, Nigeria’s leading on-demand delivery service, has raised $2.5 million in seed funding aimed at streamlining operations and driving geographic expansion.
Lagos-based food delivery platform Chowdeck has secured $2.5 million in a seed funding round from a notable group of investors.
The round was led by YCombinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds, and Haleakala Ventures. Additionally, prominent angel investors such as Rappi co-founders Simon Borrero and Juan Pablo Ortega, Paystack co-founders Shola Akinlade and Ezra Olubi, as well as executives from Sportybet, Thrive Agric, and Amazon participated.
Since launching in October 2021 following the COVID-19 lockdowns in Lagos, Chowdeck has rapidly scaled its on-demand food delivery service. The startup now boasts over 500,000 users and a network of more than 3,000 delivery riders across 8 major Nigerian cities, including Lagos, Abuja, and Port Harcourt. The new funding will allow Chowdeck to solidify its market leadership in these initial markets and lay the groundwork for expansion into additional cities.
The growth of on-demand delivery in Nigeria has been fueled by rising smartphone and internet penetration, improved digital payments infrastructure, and evolving consumer preferences. With traffic congestion a persistent challenge in major urban centres, the convenience of having food and other goods delivered has become increasingly appealing to Nigerian consumers.
Chowdeck has positioned itself as the fastest delivery service in Africa, with an average delivery time of just 30 minutes. The startup has built an efficient logistics operation that enables seamless order fulfilment for food vendors while also providing consumers with a user-friendly platform to order from their favourite local restaurants. Chowdeck has also established partnerships with leading quick-service restaurant chains to help drive sales and enhance the overall customer experience.
This latest round of funding marks a significant milestone for Chowdeck as it seeks to solidify its leadership in Nigeria’s competitive on-demand food delivery market and lay the foundation for future expansion throughout the country.
Speaking on the fresh capital injection, Chowdeck’s CEO and co-founder Femi Aluko shared the startup’s vision: “We know that Nigerians love good food, and we just want to make it as easy as possible for them to access the food they desire. Chowdeck was birthed to fulfill this purpose, and we are committed to delivering truly excellent experiences for our customers, vendors, and riders. We are pleased with the success we have achieved to date and excited to have raised these funds that will enable us to replicate that success in more parts of Nigeria, and add value to our customers, vendors, and riders in as many ways as we can.”
Chowdeck has also garnered the backing of prominent figures in the Nigerian tech ecosystem. Shola Akinlade, the CEO and co-founder of Paystack, expressed his confidence in the Chowdeck team, saying, “Chowdeck is not only addressing the crucial need for an efficient and reliable on-demand delivery service in Nigeria, the team embodies innovation and a commitment to excellence. It is a privilege to be part of their journey, and I look forward to celebrating more success with them in the months and years to come. Apart from investing financially into the company, our experience with building Paystack puts us in a great position to provide a lot of practical support, and I am excited to see what is to come from the Chowdeck team.”
June Angelides, a Partner at Levare Ventures, also lauded Chowdeck’s swift rise to prominence in the Nigerian market. “Chowdeck has quickly become a household name across Nigeria, priding itself on very high standards of execution. They are addressing a large and complicated problem, especially in Africa, delivering goods at record speed. I am excited that they have proven that the opportunity is there beyond restaurants and supermarkets. The team have secured landmark partnerships with Shoprite, Chicken Republic, and KFC, a sign of their grit. Their customers love them, their riders love them. There’s so much more to come, and I’m excited to be with them on the journey.”
Chowdeck was founded in October 2021 and is backed by the prestigious Y Combinator accelerator program. The startup’s technology platform connects food vendors with consumers, enabling customers to order meals from a variety of restaurants and have them delivered to their doorsteps.
By streamlining the food delivery process, Chowdeck aims to make it easier for Nigerians to access their favourite meals while also driving growth and profitability for its vendor partners.
