A Dubai-based food-tech company has extended its pre-series A funding round to the end of March, its newly-appointed Chief Strategy Officer has said.
Omar Fayed, of cloud kitchen start-up Kaykroo, told Al Arabiya English it raised its target of $4 million in October but decided to seek a further $3 million to support its “capital intensive technology” and expansion in Saudi Arabia.
“Of the $7 million being raised, we have secured $5.5 million, and are in discussions with investors for the remaining $1.5 million,” Fayed said. “During this round new investors will end up owning around 10 percent of the company.”
Since its launch in 2020, Kaykroo’s network has grown from 15 to 18 facilities across Dubai, Abu Dhabi, Sharjah, Al Ain and Ras Al Khaimah. Its 19th facility is set to open in Riyadh in the third quarter of 2021.
The new company’s F&B brand portfolio has grown from six at the time of launch to ten concepts in total.
These include Man’oushe Street, which now falls under Kaykroo’s umbrella. Launched in 2010, 80 per cent of Man’oushe Street’s business comes from online orders for delivery.
Kaykroo’s business model will see concepts shift from brick and mortar completely, to the cloud kitchen phenomenon.
The concepts being launched are developed based on data analytics that provide insight into customer preferences. The technology platform being used is Kaykroo’s in-house propriety software.
Kaykroo will launch a two-tranche Series A funding round in the fourth quarter of this year, when a 10-15 percent stake will be sold for around $25 million.
Launched in September 2020, the Kaykroo team is comprised of more than 400 employees, including a delivery fleet of over 100 valets, and 15 cloud kitchens and brand residences across the UAE.