Chowdeck Secures $9M Funding from Novastar and Y Combinator to Expand Nigeria’s Food Delivery Market

Chowdeck Secures $11.2M to Expand Food Delivery Across Africa

Accra, Ghana – July 31, 2025 – Chowdeck, a rapidly growing food delivery platform focused on the African market, has announced a successful $11.2 million funding round led by Novastar Ventures. The investment will fuel the company’s expansion across Ghana and Nigeria, bolstering its position as a key player in a competitive landscape.

The funding comes as Chowdeck reports hitting a significant milestone: 1,000 daily orders in Ghana, achieved organically – without relying on paid advertising. According to Chowdeck CEO Femi Aluko, this surge demonstrates a strong, previously unmet demand for convenient access to both local and international cuisine.The company is now aggressively targeting 5,000 daily orders by the end of September 2025.

Chowdeck’s strategy extends beyond simply delivering meals. The company is actively building a comprehensive ecosystem, incorporating dark stores to complement its existing restaurant and grocery delivery services. A recent acquisition of Mira, a point-of-sale (POS) provider for African food and hospitality businesses, signals a move towards becoming a “vertical SaaS-plus-logistics” provider. Mira’s real-time inventory and order management tools will be integrated to optimize Chowdeck’s operations and offer enhanced services to its restaurant partners.

This funding represents a significant win for locally-grown African tech companies. The food delivery sector has seen recent exits from international giants like Jumia,creating opportunities for regional players like Chowdeck to capture market share. While competitors such as Glovo, Bolt Food, and Yango have also scaled back operations in certain African markets, Chowdeck is capitalizing on the void, especially in Nigeria and Ghana.”The market is still very early,” Aluko stated, emphasizing the shift in consumer behavior. “A whole generation is growing up ordering food without ever having walked into some of the restaurants or markets on our platform.” This generational shift underscores the long-term potential of online food delivery in Africa.novastar Ventures’ investment reflects confidence in Chowdeck’s execution and deep understanding of the local market.”chowdeck is building the future of logistics for African cities,” said partner Brian Waswani Odhiambo. “With deep local insight, a sustainability-first approach, and impressive execution, it is indeed redefining last-mile delivery on the continent.”

Beyond the Headlines: The Future of Food Delivery in africa

Chowdeck’s success highlights several key trends shaping the future of food delivery in Africa:

The rise of Local Champions: The exits of international players demonstrate the challenges of navigating the complexities of African markets. Local companies with a nuanced understanding of consumer preferences and logistical hurdles are poised to thrive.
Integrated Ecosystems: The move towards vertical integration – combining delivery with POS systems and dark stores – is becoming increasingly common. This allows companies to control more of the value chain, improve efficiency, and offer a more comprehensive service. The Power of Organic Growth: Chowdeck’s initial success without paid advertising underscores the importance of building a strong brand and meeting genuine consumer needs.
The Super App Model: Competition isn’t limited to dedicated food delivery services. Super apps like Gozem, Yassir, and Mnt-HALAN are also vying for a share of the market, offering a wider range of services alongside food delivery.
* Logistics as a Core Competency: Efficient last-mile delivery remains a critical challenge in many African cities. Companies that can overcome these logistical hurdles will have a significant competitive advantage.

How does Chowdeck’s funding align with the broader growth trends in Nigeria’s food delivery market?

Chowdeck Secures $9M Funding: Fueling Nigeria’s Food Delivery Revolution

The Investment Details: Novastar,Y Combinator,and a Growing Market

Chowdeck,a rapidly expanding food delivery platform in Nigeria,has announced a prosperous $9 million funding round led by Novastar Ventures,with participation from Y Combinator. This significant investment signals strong confidence in Chowdeck’s potential to dominate the burgeoning food delivery market in Nigeria and across Africa. The funding will be strategically allocated to expand Chowdeck’s operational reach, enhance its technology infrastructure, and bolster its marketing efforts. This round follows Chowdeck’s previous participation in the Y Combinator accelerator program, further validating its business model and growth trajectory.

Understanding the Nigerian Food Delivery Landscape

Nigeria presents a unique and rapidly evolving landscape for online food delivery services. Several factors contribute to this growth:

Increasing Smartphone Penetration: A growing number of Nigerians have access to smartphones, facilitating the use of mobile apps for ordering food.

Rising Middle Class: A burgeoning middle class with disposable income is driving demand for convenience and diverse food options.

Urbanization: Concentration of population in urban centers like Lagos, Abuja, and Port Harcourt creates a concentrated customer base for delivery services.

Limited Restaurant Infrastructure: Many restaurants lack robust delivery capabilities, creating an possibility for platforms like Chowdeck to fill the gap.

Demand for Convenience: Busy lifestyles and increasing work hours are fueling the demand for convenient meal solutions.

Key players in the Nigerian food delivery industry include Jumia Food, Bolt Food (which recently exited the market), and Glovo, alongside local startups like Chowdeck. The competitive landscape is intense, with companies vying for market share through competitive pricing, faster delivery times, and wider restaurant selections.

How Chowdeck Plans to Utilize the $9 Million

Chowdeck’s leadership has outlined a clear strategy for deploying the newly acquired funds. Key areas of focus include:

Geographic Expansion: Moving beyond its current operational cities,Chowdeck aims to expand its services to more states across Nigeria,targeting key urban centers with high demand.

Technology Enhancement: Investing in advanced technologies to optimize delivery routes, improve app functionality, and enhance the overall user experience. This includes AI-powered logistics and real-time tracking.

Restaurant Partnerships: Expanding its network of restaurant partners to offer a wider variety of cuisines and cater to diverse consumer preferences. Focus will be on both established restaurants and local eateries.

Marketing and Brand building: Increasing brand awareness through targeted marketing campaigns, social media engagement, and strategic partnerships.

Driver Network Growth: Recruiting and training a larger fleet of delivery drivers to ensure efficient and timely order fulfillment. This includes providing competitive compensation and benefits.

the Role of Novastar and Y Combinator

Novastar Ventures is a venture capital firm focused on investing in early and growth-stage companies in Africa. Their investment in Chowdeck reflects their belief in the potential of the African tech ecosystem and the growing demand for innovative solutions in the food and beverage sector.

Y Combinator, a renowned startup accelerator, played a crucial role in shaping Chowdeck’s early development. The program provided mentorship, networking opportunities, and seed funding, helping the company refine its business model and prepare for larger-scale investment.Y Combinator’s continued participation in this funding round demonstrates their ongoing confidence in Chowdeck’s team and vision.

Benefits for Consumers and Restaurants

The influx of funding into Chowdeck is expected to yield several benefits for both consumers and restaurants:

For Consumers:

Wider Selection: Access to a greater variety of restaurants and cuisines.

Faster Delivery: Improved logistics and a larger driver network will lead to quicker delivery times.

Competitive Pricing: Increased competition among delivery platforms may result in lower delivery fees and promotional offers.

Enhanced User Experience: A more user-kind app and improved customer support.

For Restaurants:

Increased Revenue: Access to a wider customer base through Chowdeck’s platform.

Reduced Operational Costs: Outsourcing delivery logistics to Chowdeck can reduce the need for restaurants to invest in their own delivery infrastructure.

Marketing Support: Exposure to Chowdeck’s marketing campaigns can help restaurants reach new customers.

Data Analytics: Access to data on customer preferences and ordering patterns can help restaurants optimize their menus and marketing strategies.

challenges and Opportunities in the Nigerian food Delivery Market

Despite the promising growth prospects, the nigerian food delivery sector faces several challenges:

Infrastructure Deficiencies: Poor road networks and traffic congestion can hinder delivery times.

Payment infrastructure: Limited access to credit cards and reliance on cash payments can create logistical challenges.

Logistics Complexity: Navigating complex addresses and ensuring accurate order fulfillment can be difficult.

Competition: The market is becoming increasingly competitive, requiring companies to differentiate themselves through innovation and customer service.