Chowdeck secures $9 million to fuel quick commerce and expansion in Africa

By Mofeoluwa Awe

Chowdeck, a Nigerian on-demand delivery platform, has closed a $9 million Series A funding round. It is shifting to a new rapid commerce model. The company is also extending its presence in Nigeria and Ghana. Novastar Ventures spearheaded the capital round with participation from Y Combinator and other investors. This capital will help the firm expand beyond its meal delivery beginnings.

Funding Supports Dark Stores and Development

Chowdeck will use the fresh funding to establish “dark stores” and support an ambitious development strategy. These locations are specifically designed to complete online orders. By year’s end, Chowdeck plans to have 40 dark stores up and running. The company has a lofty goal of 500 by the end of 2026. This move aims to make the service more competitive in the fast-paced delivery industry. The company wants to significantly reduce delivery times for groceries and other necessities.

The capital round follows Chowdeck’s recent purchase of Mira, a point-of-sale (POS) firm. This strategic acquisition integrates Mira’s inventory management and payment processing solutions directly into Chowdeck’s system. The result is a more robust and efficient operational backend. Chowdeck can now sell items and offer critical software services to its merchant partners. This establishes the company as a full-stack technology firm.

A Different Approach to Growth

Unlike many companies that prioritize market share over profit, Chowdeck stands out. It expands only to new places where it can break even within a few weeks. The company has a successful business plan. This approach has already worked in Ghana, where the company reached a goal of 1,000 daily orders in just three months. This feat would have taken almost a year to achieve in its home market.