Funding of $9 million for Series A secured by Chowdeck for accelerating deliveries and expanding operations in Nigeria and Ghana
Chowdeck Secures $9 Million Series A Funding to Revolutionize African On-Demand Delivery
Chowdeck, an African on-demand delivery platform, has announced that it has secured $9 million in Series A equity funding. This investment will accelerate the launch of a quick commerce model and expand the company's footprint across more cities in Nigeria and Ghana.
The funding round was led by Novastar Ventures, with participation from Y Combinator and other investors. Femi Aluko, CEO & co-founder of Chowdeck, stated that the funding will accelerate growth plans, enabling expansion into more cities, reduction of delivery times, and scaling of the grocery footprint.
Chowdeck's strategy behind this funding is to reduce delivery times, scale its grocery and essentials delivery, and establish new fulfillment hubs such as dark stores to enable hyperlocal, same-day service. This approach will enhance customer experience by delivering meals, groceries, and medicines more swiftly and efficiently while expanding its market presence.
In addition to this, Chowdeck recently acquired Mira, a POS solutions provider, to augment its technological capabilities for restaurants and vendors, reinforcing its comprehensive quick commerce ecosystem. This move aims to improve merchant tools and customer experience on Chowdeck.
The company currently serves 1.5 million customers across 11 cities with more than 20,000 riders, averaging 30-minute delivery times. Chowdeck aims to deliver groceries, meals, and medicine faster through dark stores and hyperlocal logistics.
Brian Waswani Odhiambo, Partner at Novastar Ventures, said, "Chowdeck is building the future of logistics for African cities and redefining last-mile delivery on the continent." The new investors bring sector expertise, global networks, and operational know-how to help navigate Africa's logistics challenges.
The funding will be used to roll out quick commerce and expand Chowdeck's reach in Nigeria and Ghana. The meal delivery value in 2024 was 6 times higher than in 2023, indicating a growing demand for on-demand services in Africa. Chowdeck plans to roll out quick commerce hubs in additional Nigerian and Ghanaian cities.
With this funding, Chowdeck aims to become Africa's leading super app for food, groceries, and essentials, attracting top talent to innovate and improve logistics, payments, inventory management, and data analytics. This will enable thousands of merchants to operate more efficiently on the platform.
Technology will be instrumental in Chowdeck's growth plans, as the recent acquisition of Mira, a POS solutions provider, aims to enhance technological capabilities for restaurants and vendors, improving merchant tools and customer experience on the platform. The funding will also be utilized to implement quick commerce hubs, such as dark stores, which will rely on advanced technology for hyperlocal, same-day service.
