Lagos, 30 April 2024 – ChowdeckNigeria’s leading on-demand delivery service, has secured $2.5 million in seed funding to optimize its operations and support its expansion to more cities across the country.
The seed funding round included investments from YCombinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds, and Haleakala Ventures. Simon Borrero and Juan Pablo Ortega (co-founders of Rappi – the largest online delivery platform in Latin America), Shola Akinlade and Ezra Olubi (co-founders of Paystack), Sudeep Ramani (Sportybet), Ayo Arikawe (Thrive Agric) and Karthik Ramakrishnan (Amazon) also participated as angels.
Zoom in
Since launching in October 2021 following the COVID-19 lockdown in Lagos, Chowdeck has acquired more than 500,000 users and more than 3,000 riderss (who usually earn the same as senior civil servants in Nigeria) serving 8 cities in Nigeria: Lagos, Abuja, Ibadan, Port-Harcourt, Ilorin, Benin City, Abeokuta, and Asaba.
This new funding will enable Chowdeck to double its market leadership in these cities and lay the groundwork for further expansion into other cities in Nigeria.
Zoom out
Driven by a combination of increased smartphone and internet penetration, improved payment systems, evolving consumer preferences and a host of other factors, there has been significant growth in on-demand delivery services in Nigeria in recent years.
For example, heavy traffic in major cities makes it difficult for people to shop for groceries, meals or other goods, increasing the appeal of delivery services that can save time. This growth trajectory is poised to continue as many of the challenges that hindered previous efforts to provide on-demand delivery services have been resolved.
What they say
Femi Aluko, CEO and co-founder of Chowdeck, said, “We know 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 born to fulfill this purpose and we are committed to providing truly exceptional 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 which will enable us to replicate this success in more parts of Nigeria and add value to our customers, vendors and riders in as many ways as we can.”
Shola AkinladeCEO and co-founder of Paystack said, “Chowdeck not only addresses the critical need for an efficient and reliable on-demand delivery service in Nigeria, the team embodies innovation and commitment to excellence. It is a privilege to be a part of their journey and I look forward to celebrating more successes with them in the months and years to come.
In addition to the financial investment in the company, our experience building Paystack puts us in a great position to provide very hands-on support, and I’m excited to see what it’s like to come from the Chowdeck team.”
June AngelidisPartner at Levare Ventures, said “Chowdeck quickly became known throughout Nigeria, proud of its very high standards of execution. They face a big and complex 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 has secured landmark partnerships with Shoprite, Chicken Republic and KFC, a testament to its toughness. Their customers love them, their riders love them. There’s a lot more to come and I’m excited to be on the journey with them.”
About Chowdeck
Chowdeck is the fastest delivery service operating outside of Africa today, allowing consumers to purchase food and have it delivered to their door in 30 minutes, on average.
The startup has built an efficient logistics function that food vendors can leverage to deliver seamless meals to customers, while also providing consumers with an easy platform to order meals from their favorite restaurants in their city.
The startup has also partnered with a wide range of leading quick-service restaurants, such as Chicken Republic, Burger King, Bukka Hut, and more to increase sales, provide logistics infrastructure and other services to provide an enhanced customer experience.
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