Chowdeck Secures $2.5M to Revolutionise Nigeria’s Food Delivery Market

Ikenna ChurchillMay 1, 20241 Mins read706

Nigeria’s strong affinity for food, coupled with the rise of online shopping, presents a significant opportunity for the food delivery market to thrive. Lagos-based startup Chowdeck, backed by Y Combinator and armed with $2.5 million in seed investment, aims to capitalise on this burgeoning market.

Founded by Femi Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck offers consumers the convenience of ordering food and groceries and having them delivered within an average of 30 minutes. Inspired by Aluko’s experience of quick deliveries and exceptional customer service during a trip to Dubai, Chowdeck seeks to replicate this level of service in Nigeria.

Despite a competitive market dominated by players like Jumia Food and Bolt Food, Chowdeck has experienced significant growth since its launch in October 2021. With over 3,000 riders and 500,000 users, the platform has carved out a niche by prioritising convenience over discounts. Unlike its predecessors, Chowdeck focuses on maintaining positive unit economics and minimising discounts to ensure sustainability.

With the exits of Jumia Food and Bolt Food from the Nigerian market, Chowdeck has emerged as a critical player, doubling its user base within six months. The startup’s delivery system relies on geotagging and diverse vehicle options to streamline operations and provide fast deliveries.

Chowdeck’s logistics setup benefits not only small food vendors but also supermarkets and pharmacies. With plans to expand to more cities across Nigeria, the startup aims to use its newly raised capital to improve operational efficiency and enhance the experience for customers, vendors, and delivery riders.

The seed round attracted investment from notable backers, including Y Combinator, Goodwater Capital, and founders of successful startups like Rappi and Paystack. With this support, Chowdeck is poised to disrupt the food delivery market further and drive growth in Nigeria’s burgeoning e-commerce sector.

Read: Nollywood vs. Hollywood: A Look at Nigeria’s Top-Grossing Films of 2023