Nigerian worthwhile meals supply Chowdeck lands $9M from Novastar, Y Combinator

Chowdeck, a Lagos-based meals supply startup that has stayed worthwhile in a notoriously powerful and low-margin market, has raised $9 million in Sequence A funding to launch a fast commerce technique and increase into extra cities in Nigeria and Ghana.

The fairness spherical was led by Novastar Ventures, with participation from Y Combinator, AAIC Funding, Insurgent Fund, GFR Fund, Kaleo, HoaQ, and others. The buyers are betting on the workforce’s means to pair native market experience with execution and switch a notoriously troublesome sector right into a worthwhile tremendous app for meals, groceries and necessities.

“We’re thrilled about this spherical because it brings us nearer to our imaginative and prescient of changing into Africa’s primary tremendous app,” CEO and co-founder Femi Aluko stated. “This funding will supercharge our development plans, enabling us to increase into extra cities, cut back supply occasions, scale our grocery footprint, and appeal to the perfect expertise to drive innovation and buyer satisfaction.”

Based in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck now operates in 11 cities throughout Nigeria and Ghana, serving 1.5 million clients with a community of greater than 20,000 riders. Its logistics system averages half-hour per order, and in dense areas, greater than half of deliveries arrive by bicycle.

The brand new funding will assist Chowdeck roll out fast commerce, ultra-fast supply backed by a community of darkish shops and hyperlocal logistics hubs. The corporate plans to open 40 darkish shops by the top of this yr and 500 by the top of 2026, with two to a few new shops launching every week. Chowdeck raised a $2.5 million seed spherical final yr.

Meals supply is a crowded enterprise globally, however when completed effectively, it has led to another huge firms like DoorDash.

Fast commerce, however, has been a capital-intensive gamble in most markets. In Europe, Gorillas and Getir burned via tons of of thousands and thousands of {dollars} earlier than retreating or consolidating. In India, platforms like Blinkit, Zepto and Swiggy have had various ranges of success with the mannequin with regards to profitability.

Chowdeck has been worthwhile since earlier than this increase and Aluko says the corporate doesn’t enter cities or verticals with out planning to interrupt even inside a few weeks.

For example, the meals supply platform entered neighbouring Ghana this Might. Inside three months, it was dealing with 1,000 every day orders with out paid promoting, which, in keeping with Aluko, got here from pent-up demand for a service that delivers native favorites alongside worldwide cuisines. The corporate goals to quintuple that quantity to five,000 every day orders by the top of September 2025.

Aluko says Chowdeck plans to use the identical playbook to darkish shops, which is able to complement its restaurant and grocery supply operations.

One other vertical complementing these operations will likely be software program. This June, the YC-backed startup acquired Mira, a point-of-sale supplier for African meals and hospitality companies. Mira’s instruments handle stock and orders in actual time; now, it is going to assist Chowdeck optimize its operations, positioning the corporate as a vertical SaaS-plus-logistics supplier for eating places.

Chowdeck’s increase is a win for native gamers within the sector, after Jumia’s exit left market share to international manufacturers equivalent to Glovo, Bolt Meals, and Yango. But, a few of these firms have additionally withdrawn from sure markets, together with Nigeria and Ghana, which Chowdeck is now focusing on aggressively.

Tremendous apps equivalent to Gozem, YC-backed Yassir, and MNT-Halan are different native firms providing meals supply providers in different African markets.

“The market continues to be very early,” Aluko stated. “Buyer habits is shifting on-line for the primary time. A complete technology is rising up ordering meals with out ever having walked into a few of the eating places or markets on our platform.”

For lead investor Novastar Ventures, the wager is on execution and native perception. “Chowdeck is constructing the way forward for logistics for African cities,” stated companion Brian Waswani Odhiambo. “With deep native perception, a sustainability-first method, and spectacular execution, it’s redefining last-mile supply on the continent.”