A Chicago startup that’s found a niche in Asian food delivery has raised a new round of funding to help it expand to more cities.
Chowbus announced Wednesday that it has raised $4 million in a seed round led by New York-based investment firms Greycroft Partners and FJ Labs. Other investors include Chicago’s Hyde Park Angels and Fika Ventures.
This latest round brings Chowbus’ total funding to $5.1 million.
Chowbus originally got its start in 2016, delivering food on efficient routes with only a $1 delivery charge. The startup has since modified its model. It still offers the $1 option, but also offers an unlimited delivery option for $9.99 and standard door-to-door delivery.
“Chowbus is a marketplace for the diners to explore authentic food," said CEO Linxin Wen. "At the same time, we empower authentic, local and independent restaurants to build their businesses."
The startup has more than 60,000 users and offers delivery from about 460 restaurants across its six markets. Besides Chicago, Chowbus is available in Champaign, Ill., Boston, New York, Philadelphia and Lansing, Mich.
Popular Chicago restaurants on the platform include Lao Szechuan, which has locations throughout the city, and Strings in Lakeview and Chinatown.
With the new financing, Chowbus said it plans to expand to 20 new markets and hire more employees. Chowbus currently employs 32 full-time people and over 200 contract delivery drivers, Wen said.
In 2018, Wen said Chowbus saw 300 percent year-over-year revenue growth, and now has offices not only in Chicago, but also in Boston and Philadelphia.
