Chowdeck Logistics Nigeria Raises $2.5m to Deliver Meals in 30 Minutes

Chowdeck Logistics Nigeria Raises $2.5m to Deliver Meals in 30 Minutes

Quick Reads

• Chowdeck raised $2.5M in seed funding backed by Y Combinator.
• The startup delivers meals in an average of 30 minutes across eight Nigerian cities.
• Revenues grew by 1,200% between 2022 and 2023.
• Jumia Food and Bolt Food both exited Nigeria, clearing the path for Chowdeck.
• Chowdeck riders earn three to five times Nigeria’s minimum monthly wage.

Nigeria’s food delivery market has a new contender fighting hard for the top spot. Lagos-based Chowdeck has raised $2.5 million in seed funding to scale its operations. The startup carries the backing of Y Combinator, one of the world’s most prestigious accelerators.

Nigerians spend nearly 60% of their income on food, the highest share globally. Consequently, the country’s online food delivery market could reach between $2 billion and $3 billion by 2032. However, despite this massive opportunity, no single player has dominated the space. That gap is exactly what the Chowdeck Nigeria food delivery startup aims to fill.

Femi Aluko, Olumide Ojo, and Lanre Yusuf co-founded the company in 2021. CEO Aluko drew inspiration from a work trip to Dubai, where restaurants delivered meals quickly and apologized for delays. He wanted to build that same standard back home in Nigeria.

The platform started with just a few bikes and two restaurant partners. Today, it has grown to more than 3,000 riders and over 500,000 registered users. Furthermore, more than 100,000 users actively place orders each month.

What separates Chowdeck from its predecessors is its focus on sustainable unit economics. Earlier players like Jumia Food and Bolt Food both exited Nigeria citing unsustainable operations. Chowdeck, however, chose to minimize discounts and focus on customers who value speed over price cuts.

“We took the time to figure out the right economics for our delivery business,” Aluko explained. As a result, the startup’s revenues grew by 1,200% between 2022 and 2023. By March 2024, the platform was processing ₦2.4 billion, about $2 million, in monthly transactions.

The startup currently operates across eight Nigerian cities, with Lagos generating 80% of its volumes. Beyond food, it also runs delivery services for supermarkets and pharmacies. Notably, Chowdeck’s riders earn three to five times Nigeria’s monthly minimum wage, making it an income lifeline for thousands.

Investors in the round include YC, Goodwater Capital, FounderX Ventures, HoaQ Fund, and Haleakala Ventures. Founders of Rappi and Paystack also joined the investor list, signaling strong confidence in the Chowdeck Nigeria food delivery startup’s potential.