A Lagos food delivery company just proved again that African startups can thrive where global giants failed. Chowdeck closed a $9 million Series A round while staying profitable in a market that has crushed many competitors.
The funding comes at a time when Nigeria’s online food delivery market is worth over $1 billion and growing at 10.3% annually, according to IMARC Group data. Yet most players burn cash trying to capture market share.
Novastar Ventures led the round, with Y Combinator, AAIC Investment, Rebel Fund, and other investors joining. The money will fuel Chowdeck’s expansion across West Africa and launch its quick commerce strategy.
Chowdeck Builds Profits While Others Exit
Founded in October 2021, Chowdeck now operates in 11 cities across Nigeria and Ghana. The company serves 1.5 million customers through over 20,000 riders and maintains an average delivery time of 30 minutes.
The startup took a different path from competitors. While Jumia Food and Bolt Food withdrew from Nigerian operations in 2023, Chowdeck focused on local favorites and sustainable unit economics.
“We don’t enter cities or verticals without planning to break even within a couple of weeks,” CEO Femi Aluko explained. This approach helped Chowdeck stay profitable before raising external funding.
In 2024, the company’s meal delivery value grew sixfold from the previous year. This year, Chowdeck surpassed its entire 2024 volume before July ended.
Ghana Expansion Shows Quick Market Entry
Chowdeck entered Ghana in May 2025 and reached 1,000 daily orders within three months without paid advertising. The rapid growth came from unmet demand for reliable local food delivery services.
Ghana’s online food delivery market shows strong growth potential, with revenue projected to grow at 10.6% in 2024, according to Statista. The market benefits from urbanization and changing consumer habits.
Quick Commerce Strategy Targets Ultra-Fast Delivery
The new funding will help Chowdeck launch quick commerce through a network of dark stores. These micro-fulfillment centers enable ultra-fast delivery of groceries and essentials.
Chowdeck plans to open 40 dark stores by end-2025 and 500 by end-2026, launching two to three new locations weekly. The global quick commerce market is expected to grow from $184.6 billion in 2025 to $337.6 billion by 2032, according to Fortune Business Insights.
Quick commerce has proven challenging in other markets. European players like Gorillas and Getir burned hundreds of millions before consolidating. However, Chowdeck’s focus on profitability may help it avoid similar pitfalls.
Technology Acquisition Strengthens Operations
In June 2025, Chowdeck acquired Mira, a point-of-sale provider for African food businesses. This acquisition adds inventory management and real-time order processing to Chowdeck’s capabilities.
The Mira technology helps optimize operations and positions Chowdeck as a vertical software provider for restaurants. This creates additional revenue streams beyond delivery commissions.
African Super App Vision Takes Shape
Chowdeck wants to become Africa’s leading super app, combining food delivery, groceries, and essential services. This follows successful super app models in other emerging markets.
“We’re thrilled about this round as it brings us closer to our vision of becoming Africa’s number one super app,” Aluko said. The funding will help attract talent and improve customer satisfaction across all services.
Local competitors include super apps like Gozem, Y Combinator-backed Yassir, and MNT-Halan operating in other African markets. However, Chowdeck’s profitability focus sets it apart from cash-burning rivals.
Market Opportunity Remains Large
Nigeria’s food delivery market is projected to reach $4.95 billion by 2030, growing at 10.05% annually, according to Statista. The quick commerce segment across Africa could hit $2.46 billion by 2030.
“The market is still very early,” Aluko noted. “Customer behavior is shifting online for the first time. A whole generation is growing up ordering food without ever having walked into some of the restaurants on our platform.”
For lead investor Novastar Ventures, the bet centers on execution and local market knowledge. “Chowdeck is building the future of logistics for African cities,” said partner Brian Waswani Odhiambo. “With deep local insight and impressive execution, it is redefining last-mile delivery on the continent.”
The funding validates that African startups can build profitable businesses in challenging markets through local expertise and disciplined growth strategies.
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