Nigerian food delivery platform secures $2.5m seed funding
Nigerian food delivery platform secures $2.5m seed funding
Chowdeck has secured $2.5 million to optimise its operations and support expansion into more cities.
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Chowdeck, a Nigerian on-demand delivery service platform, has secured $2.5 million in seed funding to optimise its operations and support expansion into more cities across the country.
The seed funding round included investment from Y Combinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds and Haleakala Ventures.
Simon Borrero and Juan Pablo Ortega (co-founders of Rappi – Latin America’s largest online delivery platform), Shola Akinlade and Ezra Olubi (co-founders of Paystack – one of Africa’s leading fintech companies acquired by Stripe for $200 million), Sudeep Ramani (Sportybet), Ayo Arikawe (Thrive Agric) and Karthik Ramakrishnan (Amazon) also participated as angels.
Since launching in October 2021, Chowdeck has acquired more than 500,000 users and more than 3,000 riders serving eight Nigerian cities.
Driven by a combination of increased smartphone and internet penetration, improved payment systems, evolving consumer preferences and a range of other factors, there has been a significant growth in on-demand delivery services in Nigeria in recent years. For example, heavy traffic in major cities makes it challenging for people to shop for groceries, meals, or other goods, increasing the attractiveness of delivery services that can save time.
Chowdeck allows consumers to buy food and have it delivered to their doorstep. The startup has partnered with a wide range of quick-service restaurants such as Chicken Republic, Burger King, Bukka Hut and more.
Femi Aluko, CEO and co-founder of Chowdeck said, “We know that Nigerians love good food, and we just want to make it as easy as possible for them to access the food they desire. Chowdeck was birthed to fulfil this purpose and we are committed to delivering truly excellent experiences for our customers, vendors and riders. We are pleased with the success we have achieved to date and excited to have raised these funds that will enable us to replicate that success in more parts of Nigeria, and add value to our customers, vendors, and riders in as many ways as we can.”
June Angelides, partner at Levare Ventures said, “Chowdeck has quickly become a household name across Nigeria, priding itself on very high standards of execution. They are addressing a large and complicated problem, especially in Africa, delivering goods at record speed. I am excited that they have proven that the opportunity is there beyond restaurants and supermarkets. The team have secured landmark partnerships with Shoprite, Chicken Republic and KFC, a sign of their grit. Their customers love them, their riders love them. There’s so much more to come and I'm excited to be with them on the journey.”