Venture capital funding organization Y Combinator has taken two Nigerian food delivery startups into its fold. On September 7-8, 2022, Y Combinator hosted its Summer 2022 Demo Day, with eight African startup companies participating.
Chowdeck and FoodCourt are two online food startups that have confirmed remarkable revenue just one year after starting. This served as a determinant in as to why the startups received acceptance into the programme.
Given that there have been other African delivery startups accepted into the accelerator programme since it began, the presence of two food delivery services initially seems inconsequential.
Still, there’s no doubt that the pandemic impacted user purchasing behaviour. However, rising inflation rates and a return to normalcy indicate that these companies may struggle to turn a profit.
However, before the pandemic, there were food delivery services, but because of the lockdowns, many people had to order their food online.
Consequently, venture capitalists poured money into these startups, with the industry receiving more than $18 billion by 2021.
In Nigeria, however, food delivery companies continued to trail startups in the fintech, logistics, healthtech, and even edtech spaces in funding.