NIGERIA – Chowdeck, a Nigerian on-demand delivery platform, has secured US$2.5 million in seed funding to optimize its operations and support expansion into more cities across Nigeria.
The seed funding round included investment from YCombinator, Goodwater Capital, FounderX Ventures, Hoaq Fund, Levare Ventures, True Culture Funds, and Haleakala Ventures.
The platform was founded by Femi Aluko, Olumide Ojo, and Landre Yusuf to offer consumers the option of ordering food and delivering it within an average of 30 minutes.
Since its launch in October 2021, Chowdeck has acquired more than 500,000 users and more than 3,000 riders, serving eight Nigerian cities (Lagos, Abuja, Ibadan, Port-Harcourt, Ilorin, Benin City, Abeokuta, and Asaba).
This new funding will enable the startup to double down on its market leadership in these cities and lay the groundwork for further expansion into other Nigerian cities.
“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 fulfill this purpose, and we are committed to delivering truly excellent experiences for our customers, vendors, and riders,” Femi Aluko, CEO and co-founder of Chowdeck, said.
“We are pleased with our success to date and excited to have raised these funds, enabling us to replicate that success in more parts of Nigeria and add value to our customers, vendors, and riders in as many ways as possible.”
In Nigeria, significant growth in on-demand delivery services has been driven by increased smartphone usage and internet penetration.
For example, heavy traffic in major cities makes shopping for groceries, meals, or other goods challenging, increasing the attractiveness of delivery services that can save time.
This growth trajectory is poised to continue as many challenges that hampered previous attempts at providing on-demand delivery services are fixed.
“Chowdeck has quickly become a household name across Nigeria, priding itself on very high execution standards. They are addressing a large and complicated problem, especially in Africa, delivering goods at record speed,” June Angelides, Partner at Levare Ventures, said.
“I am excited that they have proven the opportunity exists beyond restaurants and supermarkets. The team has secured landmark partnerships with Shoprite, Chicken Republic, and KFC, a sign of their grit. Their customers love them, and their riders love them. There’s so much more to come, and I’m excited to be with them on the journey.”
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