Lagos-based food delivery company, Chowdeck, has secured $9 million in Series A funding to roll out a new quick commerce strategy and expand its operations in Nigeria and Ghana. The company, which was founded in 2021 by Femi Aluko, Olumide Ojo, and Lanre Yusuf, said the fresh investment will help it speed up deliveries, set up more hubs, and grow its customer base in both countries.
The Series A round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, and HoaQ, among others. The funding represents another milestone for the startup, which has managed to stay profitable in a sector where several global players have faced losses and even shut down operations in emerging markets.
Chowdeck currently operates in 11 cities across Nigeria and Ghana. The company serves about 1.5 million customers through a network of more than 20,000 delivery riders. Its delivery system is built for speed, with the company reporting an average delivery time of 30 minutes. In high-density areas, more than half of the deliveries are made using bicycles, which helps reduce costs, avoid traffic delays, and promote environmentally friendly transport.
With the new investment, Chowdeck plans to launch an ultra-fast delivery service using dark stores and hyperlocal hubs. Dark stores are small warehouses set up in strategic locations to store goods for faster dispatch. The company aims to open 40 of these stores by the end of 2025 and expand to 500 stores by 2026. This move is part of its quick commerce strategy, which focuses on delivering orders in less than 20 minutes.
Speaking about the new funding, Chowdeck’s Co-founder and Chief Executive Officer, Femi Aluko, said the company’s goal is to transform the food and grocery delivery industry in West Africa. He explained that the quick commerce model would allow customers to get essential goods faster than before, especially in cities where traffic congestion often delays traditional delivery timelines.
Novastar Ventures Partner, Wambui Kinya, said their investment in Chowdeck was driven by the startup’s strong execution, profitability, and ability to scale. She noted that the company’s focus on hyperlocal operations, combined with its deep understanding of local market needs, gives it a competitive advantage.
Chowdeck’s quick commerce rollout will see the company partnering with restaurants, supermarkets, and small businesses to keep products in stock at the dark stores. This setup means riders will no longer need to travel long distances to collect orders, cutting down delivery times and improving customer satisfaction. The company also plans to create more jobs by hiring additional riders and operational staff to run the hubs and stores.
Industry analysts say Chowdeck’s growth is a sign of rising demand for faster delivery services in West Africa. The COVID-19 pandemic changed consumer shopping habits, with more people preferring to order food and groceries online. Although some global quick commerce companies have exited certain markets due to high costs, local companies like Chowdeck are finding ways to adapt by using bicycles for deliveries, optimising routes, and focusing on profitability.
In addition to food delivery, Chowdeck has been expanding its offerings to include groceries, household items, and everyday essentials. The company’s Super App model allows users to order multiple categories of products in one place, similar to what companies like Gopuff and Glovo have done in other markets. By integrating quick commerce with a wide product range, Chowdeck hopes to increase customer loyalty and transaction frequency.
The funding announcement comes at a time when Nigeria’s tech ecosystem is attracting growing attention from global investors. In recent years, startups in fintech, e-commerce, and logistics have raised significant funding rounds, signaling confidence in the region’s potential despite economic challenges such as inflation and currency fluctuations.
Chowdeck’s management said they are committed to using the funds to expand in a sustainable way, ensuring operational efficiency and strong partnerships with local businesses. The quick commerce stores will be positioned in locations that allow riders to reach customers within minutes, helping the company compete more effectively against rivals in the delivery space.
The expansion into Ghana will also be a major focus for the company. By increasing its presence in Accra, Kumasi, and other major cities, Chowdeck hopes to replicate its Nigerian success in the Ghanaian market. This regional approach, backed by strong investor support, is expected to position the company as a leading quick commerce provider in West Africa in the coming years.
