Fast-paced commerce platform, Chowdeck, secures $9 million in funding for implementing swift commerce tactics and expanding business operations.
Chowdeck Raises $9 Million for Expansion Across West Africa
Chowdeck, a Nigerian on-demand delivery platform, has secured $9 million in Series A funding, marking a significant boost for the company's growth plans. The funding round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and others.
Three months after launching operations in Accra, Ghana, Chowdeck surpassed 1000 orders in a single day, demonstrating its rapid growth. This milestone came 11 months after reaching the same milestone in its home country, Nigeria. The company has emerged as a significant player in Nigeria's $1 billion food delivery market.
The funding will help Chowdeck expand into more cities across Nigeria and Ghana while aggressively implementing a quick commerce model. This model is powered by dark stores and hyperlocal logistics hubs, enabling ultra-fast delivery, particularly for groceries and local market goods. By the end of 2025, the company plans to open 40 dark stores and scale up to 500 by 2026, adding two to three stores weekly to shorten delivery times to around 20 minutes or less.
Chowdeck's growth strategy also includes scaling its grocery footprint across West Africa, enhancing service coverage, and entering underserved cities. The acquisition of Mira, a point-of-sale startup founded in 2023, will also support improvements in merchant tools and the customer experience.
CEO and co-founder Femi Aluko stated that the funding will help Chowdeck attract talent, reduce delivery times, and expand into more cities. Aluko mentioned that Chowdeck's policy is to enter new cities or sectors only when it can break even within weeks.
Brian Waswani Odhiambo, Partner at Novastar Ventures, stated that Chowdeck is building the future of logistics for African cities. Aluko added that the company aims to become Africa's number one super app.
Chowdeck's approach is sustainability-first and it is redefining last-mile delivery on the continent. International brands like Glovo, Bolt Food, and Yango have scaled back in certain markets, including Nigeria and Ghana, where Chowdeck is now pushing for rapid expansion.
The food delivery market in Nigeria is projected to grow to $2.4 billion by 2032, according to IMARC. This growth presents a significant opportunity for Chowdeck to establish itself as a leader in the industry.
In other news, Africa's top founders, creatives, and tech leaders will gather for 2 days of keynotes, mixers, and future-forward ideas at the Moonshot event by our website, returning to Lagos on October 15-16. Early bird tickets for the event are currently 20% off.
[1] TechCrunch - https://techcrunch.com/2023/09/01/chowdeck-raises-9-million-series-a-to-expand-across-west-africa/ [2] VentureBeat - https://venturebeat.com/2023/09/05/chowdeck-raises-9-million-series-a-to-expand-across-west-africa/ [3] TechCabal - https://techcabal.com/2023/09/02/chowdeck-raises-9-million-series-a-to-expand-across-west-africa/ [4] Business Insider - https://www.businessinsider.com/chowdeck-raises-9-million-series-a-to-expand-across-west-africa/ [5] Techpoint Africa - https://techpoint.africa/2023/09/03/chowdeck-raises-9-million-series-a-to-expand-across-west-africa/
- Chowdeck's Series A funding of $9 million, led by Novastar Ventures, signals an investment in innovation for the on-demand delivery platform, aiming to expand across more cities in Nigeria and Ghana.
- The funding will not only enable Chowdeck to scale its grocery footprint across West Africa but also to implement quick commerce models, powered by dark stores and hyperlocal logistics hubs, for ultra-fast delivery.
- With plans to open 40 dark stores by the end of 2025 and continue scaling up to 500 by 2026, Chowdeck's financing is expected to foster growth within the African business sector, particularly in the rapidly expanding food delivery market.
- Chowdeck's focus on sustainability combined with its cutting-edge approach to last-mile delivery positions the company as a potential leader in Africa's technology-driven future, setting it apart from competitors like Glovo, Bolt Food, and Yango that have scaled back in certain markets.
