In a food delivery sector littered with the corporate remains of failed ventures and strategic retreats, Nigeria’s Chowdeck has secured a $9 million Series A funding round. The company, which has maintained profitability in a low-margin market, plans to use the capital to launch a quick commerce service and expand its operations across Nigeria and into Ghana.
The round was led by pan-African investor Novastar Ventures, with significant participation from Y Combinator, GFR Fund, AAIC Investment, Rebel Fund, Kaleo Ventures, and HoaQ. The investment signals renewed confidence in a local player’s ability to navigate a market that has seen international giants like Jumia Food and Bolt Food exit.
Founded in October 2021 by CEO Femi Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck operates in 11 cities, serving 1.5 million customers with a network of over 20,000 riders. The company claims an average delivery time of 30 minutes, utilising bicycles for more than half of its deliveries in dense urban areas to improve efficiency and keep costs down.
“This funding will supercharge our growth plans, enabling us to expand into more cities, reduce delivery times, [and] scale our grocery footprint,” said Aluko.
A Sector Littered with Exits
The African food delivery market is challenging. Over the past two years, macroeconomic pressures, high operational costs, and thin unit economics have forced major players to reconsider their positions.
Jumia Food, an early pioneer, ceased operations in Nigeria and six other African countries at the end of 2023, citing unsustainable costs. Bolt Food followed suit, exiting Nigeria and South Africa to “streamline resources.”
Their departure left market share open to the likes of Spain’s Glovo, which remains a strong competitor. Yet, Chowdeck has found a way to grow amidst the turmoil. The company says the value of meals it delivered grew more than sixfold in 2023, and it surpassed that total volume before July of this year.
Investors are betting that Chowdeck’s combination of local market expertise and disciplined execution can succeed where others have struggled.
“Chowdeck is building the future of logistics for African cities,” said Brian Waswani Odhiambo, a partner at Novastar Ventures. “With deep local insight, a sustainability-first approach, and impressive execution, it is redefining last-mile delivery on the continent.”
A Profitable Playbook
Chowdeck’s core strategy has been a relentless focus on profitability and localisation. Unlike competitors who focused heavily on international fast-food chains, Chowdeck leaned into the operational complexity of delivering from local restaurants and food vendors — a move that resonated with the domestic market.
Aluko states the company has been profitable and does not enter new cities or verticals without a clear path to breaking even within weeks. He points to the company’s expansion into Ghana in May 2025 as an example. Within three months, it was processing 1,000 orders daily without paid marketing, driven by what Aluko calls “pent-up demand.” The company aims to hit 5,000 daily orders in the country by September 2025.
The Quick Commerce Gamble and Vertical Integration
The new funding will fuel Chowdeck’s push into quick commerce — ultra-fast delivery of groceries and essentials from a network of dedicated “dark stores.” The company plans to open 40 such stores by the end of 2025 and scale to 500 by the end of 2026.
It is a capital-intensive model that has yielded mixed results globally. In Europe, pioneers like Gorillas and Getir burned through billions before collapsing or consolidating. In India, platforms like Blinkit and Zepto have found some success, but profitability remains elusive for many.
Chowdeck is complementing this strategy with vertical integration. In June, the startup acquired Mira, a point-of-sale (PoS) provider for hospitality businesses. The acquisition provides Chowdeck with a suite of tools for restaurants to manage inventory, sales, and orders in real time.
The move positions Chowdeck not just as a logistics company, but as a vertical SaaS-plus-logistics provider, aiming to solve operational inefficiencies for its restaurant partners. Ted Oladele, Mira’s former CEO, has joined Chowdeck as Head of Product to lead this integration.
“The market is still very early,” Aluko noted. “Customer behavior is shifting online for the first time. A whole generation is growing up ordering food without ever having walked into some of the restaurants or markets on our platform.”
With fresh capital and a multi-pronged strategy combining logistics, software, and quick commerce, Chowdeck is betting it can build a sustainable super app on terrain where many others have stumbled.