Cloud kitchens have raised $60 million

Kitopi, a Middle Eastern start-up that provides staff and technology to so-called cloud kitchens, has raised $60 million in new funding as investors look for new ways to tap the fast-growing but capital-intensive market for online food delivery. Kitopi was founded in Dubai in 2018 and now operates 30 cloud kitchens across the US, UK and Middle East. Its urban sites exclusively prepare meals for customers using delivery apps such as DoorDash, Uber Eats and Deliveroo. Its latest financing was led by Lumia Capital, which previously invested in Careem, the Dubai- based ride-hailing group bought by Uber for $3 billion, and Knollwood… Venture capitalists have poured billions of dollars into privately held food delivery apps, driving up the companies’ valuations even as many remain heavily lossmaking.  A new breed of start-ups such as Kitopi are hoping to provide the “picks and shovels” of the food- delivery gold rush by working with several online ordering services — meaning their investors do not have to pick the winning delivery app in any given market… After raising the new funding and launching a new second headquarters in New York, Kitopi plans to open in 50 more locations across the US and 100 worldwide this year. 

Tim Bradshaw