In an exciting development for the food delivery sector in Africa, a Lagos-based startup has successfully raised $9 million in Series A funding. This investment marks a significant milestone for the company as it aims to enhance its quick commerce strategy and broaden its reach across Nigeria and Ghana.
The funding round was spearheaded by a prominent venture capital firm, with additional contributions from various investors. These stakeholders are optimistic about the startup’s potential to leverage its local market knowledge and operational expertise to transform a challenging industry into a profitable platform for food, groceries, and essential items.
“We are incredibly excited about this funding round, as it propels us closer to our goal of becoming the leading super app in Africa,” stated the CEO and co-founder. “This capital will accelerate our growth initiatives, allowing us to enter new cities, improve delivery efficiency, expand our grocery services, and attract top talent to enhance innovation and customer satisfaction.”
Founded in late 2021 by a dynamic trio, the startup currently operates in 11 cities across Nigeria and Ghana, catering to 1.5 million customers through a network of over 20,000 delivery personnel. The logistics framework is impressive, with an average delivery time of just 30 minutes, and in urban areas, a significant portion of deliveries is made via bicycle.
While many competitors have scaled back their operations in Africa, this startup has embraced the complexities of local markets by offering authentic local meals, which has helped build a loyal customer base.
In 2024, the value of meals delivered through the platform surged more than six times compared to the previous year, with the company reporting that it surpassed its total delivery value for 2024 before the halfway mark of the year.
The new funding will enable the startup to implement a quick commerce model, characterized by ultra-fast delivery supported by a network of strategically located dark stores and hyperlocal logistics hubs. The company plans to establish 40 dark stores by the end of this year and aims for a total of 500 by 2026, with a goal of launching two to three new stores each week.
Despite the global challenges in the food delivery industry, this startup has maintained profitability since before this funding round. The CEO emphasized that the company does not enter new markets without a clear plan to achieve profitability within weeks.
For example, the platform recently expanded into Ghana, and within three months, it was processing 1,000 daily orders without any paid advertising, driven by strong demand for both local and international cuisine. The company aims to increase this volume to 5,000 daily orders by the end of September 2025.
The startup also plans to apply its successful strategies to the development of dark stores, which will complement its existing restaurant and grocery delivery services.
Additionally, the company has ventured into software solutions by acquiring a point-of-sale provider that caters to the food and hospitality sectors in Africa. This acquisition will enhance operational efficiency and position the startup as a comprehensive service provider for restaurants.
This funding round is a significant win for local players in the food delivery market, especially following the exit of a major competitor, which has left room for domestic brands to thrive. However, some foreign companies have also retreated from certain markets, including Nigeria and Ghana, which the startup is now aggressively targeting.
As the market continues to evolve, the CEO noted that consumer behavior is shifting towards online ordering, with a new generation increasingly relying on delivery services without ever visiting physical restaurants or markets.
For the lead investor, the focus is on the startup’s execution and understanding of local dynamics. “This company is shaping the future of logistics in African cities,” remarked a partner at the investment firm. “With a strong local insight and a commitment to sustainability, it is redefining last-mile delivery across the continent.”