Chowdeck, a profitable food delivery platform based in Lagos, has secured $9 million in Series A funding to accelerate expansion across Nigeria and Ghana while launching an ambitious quick commerce initiative. The round, led by Novastar Ventures with backing from Y Combinator, AAIC Investment, and others, comes as the startup demonstrates unusual profitability in Africa’s challenging delivery market.
The three-year-old company operates across 11 cities, serving 1.5 million customers through a network exceeding 20,000 riders. Unlike many competitors that have retreated from African markets, Chowdeck has maintained profitability while scaling operations and reducing delivery times to an average of 30 minutes per order.
Quick Commerce Ambitions Drive Funding Strategy
The fresh capital will fund Chowdeck’s entry into quick commerce, requiring substantial infrastructure investment in dark stores and hyperlocal distribution centers. The company plans to establish 40 dark stores by year-end, scaling to 500 locations by late 2026 through a rollout of two to three new facilities weekly.
“We’re thrilled about this round as it brings us closer to our vision of becoming Africa’s number one super app” said CEO and co-founder Femi Aluko. The funding will support expansion into additional cities while building grocery and essential goods delivery capabilities alongside the existing restaurant network.
Quick commerce has proven capital-intensive globally, with European players like Gorillas and Getir burning through hundreds of millions before consolidating operations. Indian platforms including Blinkit and Zepto have shown mixed profitability results with ultra-fast delivery models.
Profitable Growth in Challenging Market
Chowdeck’s approach differs from competitors by focusing on local meal delivery, an operationally complex but relationship-building strategy. The company’s meal delivery value increased more than sixfold during 2024, with this year’s performance surpassing 2024 totals before July.
The startup entered Ghana in May and achieved 1,000 daily orders within three months without paid advertising, demonstrating what Aluko describes as pent-up demand for local and international cuisine delivery. The company targets growth to 5,000 daily Ghana orders by September 2025.
CEO Femi Aluko emphasized the company’s disciplined expansion approach, stating they avoid entering cities or verticals without planning to achieve break-even within weeks. This methodology has enabled sustained profitability while competitors have struggled with unit economics.
Technology Integration Through Strategic Acquisition
In June, Chowdeck acquired Mira, a point-of-sale technology provider serving African food and hospitality businesses. The acquisition brings real-time inventory and order management capabilities that will optimize Chowdeck’s internal operations while creating a vertical software-as-a-service offering for restaurant partners.
This technology integration supports Chowdeck’s super app ambitions, combining logistics services with software tools for the food service industry. The dual approach could provide multiple revenue streams while strengthening relationships with restaurant and retail partners.
Market Dynamics Favor Local Players
Chowdeck’s growth occurs as international competitors withdraw from Nigerian and Ghanaian markets. Jumia’s exit from food delivery created opportunities for remaining players, while foreign brands including Glovo, Bolt Food, and Yango have reduced their African presence in certain regions.
Other local competitors include super app platforms Gozem, Y Combinator-backed Yassir, and MNT-Halan across various African markets. However, Aluko suggests the overall market remains in early stages with significant behavioral shifts toward online ordering among younger consumers.
“The market is still very early” Femi Aluko noted. “Customer behavior is shifting online for the first time. A whole generation is growing up ordering food without ever having walked into some of the restaurants or markets on our platform“
For lead investor Novastar Ventures, the investment represents confidence in local execution capabilities. “Chowdeck is building the future of logistics for African cities” said partner Brian Waswani Odhiambo, citing the company’s local insight and sustainable approach to last-mile delivery.
The Series A follows Chowdeck’s $2.5 million seed round raised in the previous year, marking significant scaling in both operations and capital requirements as the company pursues its super app strategy across multiple African markets.