Nigerian food delivery startup Chowdeck has raised $9 million in a Series A funding round that will allow it to expand its operations and speed up delivery times.
What Chowdeck Will Do with New Investment
The funds will help Chowdeck accelerate its growth plans, including the opening of 40 dark stores across Nigeria by the end of the year. These localized warehouses will support faster delivery of groceries and essentials. The company aims for 15-minute deliveries to meet the increasing demand for instant consumer gratification.
Expansion into New Markets
Chowdeck currently operates in 11 cities across Nigeria and Ghana, with Lagos accounting for 80% of total delivery volume. The new investment will allow the company to enter underserved markets, particularly following its successful launch in Ghana in 2024.
Support and Reasons for the Company's Success
Chowdeck serves 1.5 million customers and employs 20,000 riders. The value of meals delivered has grown sixfold, reaching over ₦2.4 billion ($2 million) in March. Key to the company's success is its approach to rider compensation, which allows some riders to earn up to ₦400,000 ($343) per month, significantly above Nigeria's minimum wage.
With $9 million in funding, Chowdeck is poised to redefine quick commerce in Africa, focusing on technology, partnerships, and rider welfare.