Chowdeck, a rising star in the Nigerian on-demand delivery market, has secured $2.5 million in seed funding to propel its expansion plans. This investment round comes as the company experiences explosive growth, solidifying its position as a major player in the country's food delivery scene.
Founded in 2021 by a team of experienced tech entrepreneurs, Chowdeck identified a gap in the Nigerian market - a lack of efficient and user-friendly food delivery options. Inspired by their own experiences and the booming global trend of online food ordering, the founders envisioned a platform that would improve the way Nigerians access their favorite meals.
Chowdeck's success story is impressive. Within three years, the company has amassed over 500,000 users across eight major Nigerian cities. They process a staggering 14,000 daily orders, boasting a remarkable 140% increase in monthly gross merchandise value (GMV) since October 2023. This rapid growth is attributed to a unique business model that prioritizes both customer satisfaction and rider well-being. Chowdeck offers competitive delivery fees while ensuring profitability through a combination of restauranft commissions, service charges, and strategic surge fees. Notably, riders are offered competitive wages, with some earning upwards of ₦150,000 ($109) weekly - a figure comparable to senior civil servant salaries in Nigeria. This focus on rider incentives is a key factor in Chowdeck's exceptional delivery times, averaging between 22 and 30 minutes.
The $2.5 million seed funding round is a testament to Chowdeck's potential. The investment comes from a prestigious group of backers, including global accelerator Y Combinator and venture capital firm Goodwater Capital. The round also boasts participation from prominent angel investors such as Simon Borrero and Juan Pablo Ortega, co-founders of Latin America's leading delivery platform Rappi. Chowdeck is further bolstered by the support of influential Nigerian figures like Shola Akinlade and Ezra Olubi, Aluko and Ojo's former employers at Paystack. Akinlade, in a statement, praised Chowdeck's leadership team and their commitment to innovation, expressing his excitement to contribute to the company's continued success.
Femi Aluko, Chowdeck's CEO, has recently been making waves in the media, highlighting the company's competitive rider wages. This strategic media blitz comes as a rival company, Glovo, recently announced the closure of its operations in Ghana. Analysts believe this move could signal a wider trend within the African delivery market, with well-funded, rider-centric platforms like Chowdeck emerging as dominant forces.
With this fresh injection of capital, Chowdeck plans to solidify its dominance in existing markets while strategically expanding to new Nigerian cities. The company is committed to continuous improvement, focusing on enhancing its overall operations to deliver an even more seamless experience for users. Additionally, Chowdeck is exploring the expansion of its delivery services beyond food, venturing into grocery and medication deliveries in 2023.
Chowdeck's story is a shining example of Nigerian innovation. By addressing a critical need for efficient on-demand delivery services, the company is not only transforming the way Nigerians access their daily necessities but also creating significant employment opportunities within the delivery sector. With a talented team, a robust business model, and the backing of prominent investors, Chowdeck is poised for continued growth and success, shaping the future of Nigeria's burgeoning online delivery landscape.
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