While there is a wave of innovation in food technology around the world, it is still early days for Africa. There are only a handful of African food-tech startups, and a year-and-a-half global pandemic has added a couple to that list..
Kun is one of the most recent food-tech startups, and today, the six-month-old Kenyan-based company is announcing that it closed a $1 million pre-seed round to launch its on-demand food service in August is.
Pan-African venture capital firm Launch Africa Ventures led the pre-seed round. Other participating investors include Century Oak Capital GmbH and ConsenSys, with contributions from ecosystem management firm Pariti.
Founded in December 2020 by CEO Robin Reicht, Kun Delivers recently ready-to-eat food of course reasonable price. When Reach first came to Kenya from France in November 2020, it was not easy to get affordable ready-to-eat food.
“After three days of coming to Kenya, I asked where I could get great food at a cheap price, and everyone tells me it is impossible,” he told ClearTips. “It’s impossible because either you go on the street and you eat street food, which is Really Cheap but with such good quality, or you order on Uber Eats, Glovo or Jumia, where you get quality but you have to pay at least $10.
Reich saw a gap in the market and tried to fill it. The next month, he decided to start Kun. aim? Providing cheap, convenient and tasty food. It took a week to develop a pilot, and with a ready waiting list of 50 clients in a particular office location, their plans were in motion.. Kun sold more than 500 meals ($4 average) and tripled his customer base from 50 to 150.
Customers were particularly excited about the product and Kun raised $50,000 from them to continue operations, Reich said. after that though, the orders for the small team became so large that they could not comply; At one point, he used to get 50 orders per day. Thus, instead of proceeding with a pace that could have been broken, the team took a hiatus.
“We started messing up orders because, you know, it’s complicated to get food when you’re right In college in a small kitchen setting. So I said well, there’s no point in doing that, and the demand is so high and it’s better to do things right.”
next month were spent Company restructured, hired and built a factory to produce 5,000 meals per day. then when The company was ready to raise, Reich said, adding that he saw enthusiasm from customers and investors alike.. In two months, Kun closed the round, the largest in East Africa, and one of the few non-fintechs to have raised a seven-figure pre-seed round on the continent.
In a fast growing and crowded restaurant and food delivery market in Kenya, Kun Nairobi offers kibanda pricing for busy people (commonly referred to as the typical local roadside food shop) and on-going services from global companies. On demand food delivery prices.
Kun implements a hybrid model combining both cloud and dark kitchen concepts. Kun food are cooked and packaged and delivered in its factory straight For online, retail and corporate customers.
The hybrid model speaks to why Launch Africa cut a check for Kun. And according to the firm’s director Baljinder Sharma, “Leveraging the cloud kitchen model and owning the entire supply chain provides massive growth and scaling opportunities for Kun Africa.” He added: “We are looking forward to seeing the business continue to grow and grow.”
Kun’s plan Completely Launch in August after its new factory is completed. According to the details on its site, the company is promising customers that the delivery will be finish off average 30 minutes per day.
To achieve this, Kun ensures that it owns the entire supply chain, from cooking to packaging to delivery with its own drivers and motorbikes. “Our strategy is to internalize all production and human resource capabilities,” he said. This is where Kun will put most of the funds for further use. In addition to the factory, which costs about 10% of the total investment, Kun will be looking to build a bigger team. Reich told me that given Kun’s operations-heavy operations, the team size will reach 100 in December..
Once launched, the company will have its own fleet of 100 electric motorcycles by early 2022. with thisplan to rent 100 female driver.
Currently, Kun shows three different meals per day: two continental dishes and one foreign cuisine.. In the coming months and quarters, Kun’s offering will cut into microwavable meals, weight loss meals and retail meals to target European and American customers. For the latter, Reich is excited to export African food culture to Western countries.. As someone who travels a lot, the CEO thinks that Kenya, unlike other countries, does not have a strong food culture. He refers to food media such as TV shows where various meals and dishes and teaching on how to cook are shown. Reich wants Kun to be known for such programs in Kenya.
“In Kenya, we don’t have any culinary shows. So we’re going to take that position as Kenya’s culinary chief, and how do you make it happen? by creating amazing content that we plan to do by making videos and writing articles on how to cook or It is possible In college food business in general“