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Reading: Profitable Nigerian food delivery Chowdeck lands $9M from Novastar, Y Combinator
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African News Herald > Blog > Technology > Profitable Nigerian food delivery Chowdeck lands $9M from Novastar, Y Combinator
Technology

Profitable Nigerian food delivery Chowdeck lands $9M from Novastar, Y Combinator

ANH Team
Last updated: August 30, 2025 10:57 pm
ANH Team
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Chowdeck, a food delivery startup based in Lagos, has successfully raised $9 million in Series A funding to support its expansion plans in Nigeria and Ghana. The funding round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and others. The company aims to launch a quick commerce strategy and enter more cities in the region.

CEO and co-founder Femi Aluko expressed excitement about the funding, stating that it will help Chowdeck achieve its goal of becoming Africa’s top super app. The investment will fuel the company’s growth initiatives, including expanding into new cities, improving delivery times, scaling the grocery business, and attracting top talent for innovation.

Established in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck currently operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers with a network of over 20,000 riders. The company’s logistics system delivers orders in an average of 30 minutes, with more than half of deliveries in dense areas being made by bicycle.

Despite the challenges in the food delivery market, Chowdeck has thrived by focusing on local market expertise and building trust with customers through delivering local meals. The company saw a significant increase in the value of meals delivered in 2024 and has already surpassed that figure in 2025.

With the new funding, Chowdeck plans to introduce quick commerce services, which involve ultra-fast delivery supported by dark stores and hyperlocal logistics hubs. The company aims to open 40 dark stores by the end of the year and 500 by the end of 2026, with regular store launches planned. Chowdeck, which was profitable even before the funding round, emphasizes breaking even quickly in new cities and verticals.

See also  Here's how you can make four burgers for R50 with retailer's new food deal

In addition to its food and grocery delivery operations, Chowdeck acquired Mira, a point-of-sale provider for African food and hospitality businesses, to enhance its software capabilities. The company intends to optimize its operations and position itself as a vertical SaaS-plus-logistics provider for restaurants.

The funding secured by Chowdeck is seen as a positive development for local players in the sector, especially with the withdrawal of some foreign brands from certain markets. The company is aggressively targeting Nigeria and Ghana, where it aims to capture a significant market share.

As the online food delivery market in Africa continues to evolve, Chowdeck remains committed to meeting the changing needs of customers and redefining last-mile delivery on the continent. Partner Brian Waswani Odhiambo from Novastar Ventures commended Chowdeck for its deep local insight, sustainability-focused approach, and impressive execution in shaping the future of logistics in African cities.

Overall, Chowdeck’s innovative approach, focus on local markets, and commitment to customer satisfaction position it as a key player in the evolving food delivery landscape in Africa.

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TAGGED:ChowdeckCombinatordeliveryfoodlandsNigerianNovastarProfitable
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