In a significant boost to Africa's on-demand delivery sector, Nigerian startup Chowdeck has raised $9 million in a Series A funding round led by Novastar Ventures and Y Combinator.
This investment, announced on August 11, 2025, marks a pivotal moment for the Lagos-based company, which has already established itself as a profitable player in the challenging food delivery market.
Chowdeck’s Rapid Rise in Nigeria’s Delivery Landscape
Founded in 2021, Chowdeck has quickly scaled its operations, growing from a small startup to serving over 1.5 million customers across 11 cities in Nigeria and Ghana.
The company’s focus on efficiency and profitability sets it apart in an industry often plagued by low margins and high operational costs.
Strategic Expansion and Quick Commerce Innovation
With the fresh capital, Chowdeck plans to expand into more cities across Nigeria and Ghana, further solidifying its regional presence.
A key part of its strategy includes launching a quick commerce model, aiming to speed up grocery and local market deliveries through the establishment of 40 dark stores by the end of 2025.
This move is expected to address the persistent issue of slow delivery times in many African cities, enhancing customer satisfaction and market reach.
Impact on Local Economies and Employment
Chowdeck’s growth has already created opportunities for over 20,000 riders, contributing significantly to local employment in Nigeria and Ghana.
The expansion and quick commerce initiatives are likely to further boost job creation, supporting small businesses and vendors integrated into its platform.
Looking Ahead: Challenges and Opportunities
While Chowdeck’s profitability and innovative approach are commendable, the company faces challenges such as logistical hurdles and competition in the rapidly evolving African tech space.
However, with strong backing from investors like Novastar and Y Combinator, Chowdeck is well-positioned to navigate these obstacles and set a benchmark for on-demand delivery services in the region.
As it continues to grow, Chowdeck’s journey could inspire other African startups to pursue sustainable business models while addressing critical consumer needs.
Andrew Lee
