Kune Food, Kenya’s cloud kitchen has closed today, affecting 90 employees – some of whom were hired only last month.
The startup, set up in December 2020 to offer cheap food, held a trial in Kenya in early 2021 before officially starting work later that year.
In a LinkedIn post, Robin Reecht, the startup’s startup and CEO, announced the closure after failing to find funds to continue operations, citing “economic downturns and market constraints. employed. “
Last year, Kune Food raised $ 1 million of seed pre -financing and also borrowed an undisclosed amount from a bank in Kenya. Earlier this year, the startup said it was raising $ 3.5 million from local and international investors to expand their production capacity.
“Since the beginning of the year, we have sold more than 55,000 food items, reaching more than 6,000 customers and 100 business customers. But at $ 3 per meal, it wasn’t enough to sustain our growth … With rising food prices reducing our budget, we couldn’t continue, ”he wrote.
Kune’s departure was shaken, and the Reecht foundation angered Kenyans with comments showing it launched the startup when cheap food was not available in the country.
His comment received an immediate response, with more Kenyans going online to show off the many restaurants offering cheap food in the country. Kune offered an apology, expressing his regret at the way the information came.
Eventually, and boosted by $ 1 million 2021 funding, the food technology company expanded its operations with the promise of preparing and delivering new online food made at affordable prices. In the beginning, the startup handled everything including delivery but in the past few months it has started using third parties such as Uber Eats, Glovo and Bolt Food to fulfill their orders.
Until the temporary closure, Kune hoped to increase production capacity and expand its operations beyond Kenya’s capital, Nairobi. A national footprint was expected in 2024.
The startup said in a recent statement that it has invested heavily in research and development to ensure that there is an “integrated service in -house that is still working on expanding the leases in order to adapt to changing consumer needs while linking food and price. ” Locations have also been set up on the other side of Nairobi to approach his appraiser.
Kune’s investors included Pan-African venture capital firm Launch Africa Ventures, which led its first round last year, Century Oak Capital GmbH and Consonance.
Below is Reecht’s full description.
Sad day. Kune Food was closed for the day.
Since the beginning of the year, we’ve sold more than 55,000 meals, gained more than 6,000 customers and 100 sales companies. But at $ 3 per meal, it wasn’t enough to keep us growing.
With the current economic downturn and the strengthening of investment markets, we have not been able to move the next round. With rising food prices dwindling our finances, we are unable to continue.
My first thoughts go to my team. You put your heart and soul into building the Kune that many people love. I’m so sorry it didn’t work out.
To all my fellow entrepreneurs, please check out Kune’s “employment page” on LinkedIn and see if your employment requirements can be filled by some of our team. I know those are hard times for you too. But they are good people who will bring a lot of value to your company. You can call me if you need information from Kune staff.
My second thought goes to our investors. Some of you participated in Kune’s trip but I was alone with a Chef, delivering food on foot to a nearby office. Others later joined and helped us grow into a food startup with a basic technology, a factory, a kitchen, 7 servers, 6000 customers, and a team of 90 people. Not only did you invest in Kune but you gave us your time, public brain, communication, and sense of support. I’m so sorry Kune’s show didn’t happen. Betraying my faith is something I cannot forgive myself for.
My third thought goes to the buyers, sellers, banks, and partners of any kind who have supported us on our path. I apologize for the result.
A lot could have been done in a unique way, for sure. The coming months will allow us to reflect on Kune’s failure, and I hope to share about it when the time is right.
If you know anyone who would be interested in getting Kune’s IP or Assets, please reach out to PM.
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infertile land, very bad regions of the world, population growth, bad economy, no electricity, barren forests, deserts, myths, bad food, conflict has stopped economic development, famine, HIV /AIDS is a major health problem that is reducing the quality of life in the region. On the same subject : This pet food is being pulled from Walmart and target shelves despite the scarcity – do not eat this.
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Today, Africa remains the poorest and most developed continent in the world. Hunger, poverty, terrorism, civil and religious strife, corruption and agriculture, disease – the this was the case in Africa until the early 2000s.
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What are Africa’s major problems?
Topics discussed included economic growth, governance, trade, war, hunger, health and climate change on the African continent.