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Nigerian profitable food delivery Chowdeck lands $9M from Novastar, Y Combinator

6 snips
Aug 13, 2025
A Lagos-based food delivery startup has successfully raised $9 million in Series A funding. This investment aims to boost their quick commerce strategy while expanding into more cities in Nigeria and Ghana. Despite operating in a challenging and low-margin market, the company has remained profitable since its launch in 2021. Exciting plans are in place to evolve into a super app that will cater to food, grocery, and essential deliveries, positioning itself as a leader in Africa's food delivery scene.
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INSIGHT

Fundraise Accelerates Expansion

  • Chowdeck raised $9M to expand fast-commerce and city footprint across Nigeria and Ghana.
  • The round was led by Novastar with participation from Y Combinator and others.
INSIGHT

Lean Operations And Strong Reach

  • Chowdeck operates in 11 cities and serves 1.5 million customers with over 20,000 riders.
  • Its logistics system averages 30 minutes per order and uses bicycles heavily in dense areas.
INSIGHT

Local Food Focus Changes Economics

  • Chowdeck focused on delivering local meals to build trust where execution is harder.
  • Quick commerce is capital intensive globally, but local execution can change unit economics.
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