Nigeria-based startup, Chowdeck, secures $9 million in Series A funding to fuel growth and expedite expansion
Chowdeck, an on-demand delivery platform, is revolutionizing last-mile delivery on the continent with a sustainability-first approach. The company recently secured a $9 million Series A funding round, led by Novastar Ventures, with participation from Y Combinator and other investors.
This funding will accelerate Chowdeck's rollout of its quick commerce strategy, which centers on deploying dark stores and hyperlocal logistics to achieve rapid delivery. The strategy aims to deliver food, groceries, and medicine in under 20 minutes, a critical factor in their quick commerce model.
Brian Odhiambo, partner at Novastar Ventures, expressed his excitement about partnering with Chowdeck in this next phase of growth, stating that the company is building the future of logistics for African cities.
Expansion Plans
With the new funding, Chowdeck plans to expand geographically into more cities in Nigeria and Ghana. The company aims to open 40 new dark stores across Nigeria by the end of 2025 and expand to 500 dark stores by the end of 2026. This expansion will broaden service coverage, especially in underserved cities in Nigeria and Ghana.
Enhancing Technology and Logistics Infrastructure
The funding will also be used to enhance technology and logistics infrastructure to maintain efficient last-mile delivery. Chowdeck's tech-enabled logistics network currently enables businesses to deliver orders in an average of 30 minutes. With the new infrastructure, the company expects to further reduce delivery times.
Attracting Talent and Innovation
Chowdeck also aims to attract the best talent to drive innovation and improve customer experience. The company's vision is to become Africa's number one super app, integrating food, groceries, medicines, and essential everyday services on one platform.
Rapid Growth
Since its founding in October 2021, Chowdeck has grown rapidly. In 2024, the value of meals delivered via the Chowdeck platform grew more than sixfold compared to the previous year. The company currently serves over 1.5 million customers and operates with a network of 20,000+ riders across 11 cities.
Femi Aluko, CEO and co-founder of Chowdeck, stated that the funding will supercharge growth plans. He highlighted that their investment in physical infrastructure through dark stores represents a major strategic shift from their prior lean approach. This move aims to overcome constraints typical in supermarket and pharmacy deliveries under 30 minutes.
In summary, Chowdeck's quick commerce strategy centers on deploying dark stores and hyperlocal logistics to achieve rapid delivery. The recent Series A funding will accelerate this rollout, geographic expansion, and technology enhancement in Nigeria and Ghana.
The quick commerce strategy includes the use of dark stores and hyperlocal logistics hubs, smart logistics, seamless payments, inventory management, and real-time performance tools. With this funding, Chowdeck is poised to deliver faster, more reliable service to its customers, further enhancing delivery speed and improving depth of coverage.
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