Chowdeck secures $2.5 million seed funding to optimize on-demand food delivery in Nigeria

Chowdeck, Nigeria’s leading on-demand delivery service, has secured $2.5 million in seed funding to optimize its operations and support expansion to more cities across the country.

The seed funding round included investments from YCombinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds and Haleakala Ventures. Simon Borrero and Juan Pablo Ortega (co-founders of Rappi – Latin America’s largest online delivery platform), Shola Akinlade and Ezra Olubi (co-founders of Paystack – one of Africa’s leading fintech companies. Acquired by Stripe for $ 200 million), Sudeep Ramani (Sportybet), Ayo Arikawe (Thrive Agric) and Karthik Ramakrishnan (Amazon) also participated as angels.

Since its launch in October 2021 following the COVID-19 lockdown in Lagos, Chowdeck has acquired over 500,000 users and over 3,000 riders (who typically earn the same as senior civil servants in Nigeria) serving 8 Nigerian cities (Lagos, Abuja, Ibadan, Port-Harcourt, Ilorin, Benin City, Abeokuta and Asaba). This new financing will enable Chowdeck to double its market leadership in these cities and lay the foundation for further expansion into other Nigerian cities.

Driven by increased smartphone and internet penetration, improved payment systems, changing consumer preferences and a range of other factors, there has been significant growth in on-demand delivery services in Nigeria in recent years. For example, heavy traffic in big cities makes it challenging for people to buy groceries, meals or other goods, increasing the attractiveness of delivery services that can save time. This growth trajectory is likely to continue as many of the challenges that hindered previous attempts to offer on-demand delivery services have been resolved.

Chowdeck is currently the fastest delivery service operating out of Africa, allowing consumers to purchase food and have it delivered to their home within an average of 30 minutes. The startup has built an effective logistics operation that food vendors can leverage to seamlessly deliver meals to customers while providing consumers with a simple platform to order meals from their favorite restaurants in their city. The startup also partners with a wide range of leading quick-service restaurants such as Chicken Republic, Burger King, Bukka Hut and more to drive sales and provide logistics infrastructure and other services to enable improved customer experiences.

Femi Aluko, CEO and Co-Founder of Chowdeck said: “We know Nigerians love good food, and we want to make it as easy as possible for them to access the food they desire. Chowdeck was founded to achieve this goal and we strive to provide truly outstanding experiences for our customers, vendors and riders. We are pleased with the success we have achieved so far and are pleased to have raised these funds, which will allow us to replicate that success in more parts of Nigeria and add value to our customers, suppliers and riders in as many ways as possible. ”

Shola Akinlade, CEO and Co-Founder of Paystack said: “Chowdeck not only addresses the critical 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 even more successes with them in the coming months and years. In addition to investing financially in the company, our experience building Paystack puts us in a great position to provide plenty of hands-on support. I am excited to see what the Chowdeck team has to offer.”

June Angelides, Partner at Levare Ventures, said: “Chowdeck has quickly become a household name across Nigeria and prides itself on its very high execution standards. They are tackling a big and complex problem, especially in Africa, by delivering goods at record speed. I’m glad they’ve proven that there are options beyond just restaurants and grocery stores. The team has forged historic partnerships with Shoprite, Chicken Republic and KFC, a sign of their perseverance. Their customers love them, their riders love them. There is so much more to come and I am excited to join them on this journey.”

About Chowdeck

Chowdeck is a technology company that connects food vendors with consumers, allowing customers to order meals from various restaurants and have them delivered to their homes. Founded in October 2021 and backed by Y Combinator, Chowdeck streamlines the food delivery process, making it easier for consumers to access their favorite meals and driving greater growth and profitability for food sellers.