A cloud kitchen with its headquarters in Nairobi called Kune Foods shut down last week, impacting 90 employees, some of whom had been employed only last month. The firm, which was established in December 2020 to provide ready-to-eat meals, ran a trial in Kenya in the first few months of 2021. The company’s founder and CEO, Robin Reecht, announced its dissolution after failing to get funding.
Kenya, unlike other nations, doesn’t have a strong culinary culture, according to the CEO of Kune Foods. The startup received $1 million in pre-seed capital from the CEO to develop a product that will revolutionize the Kenyan food industry.
The company’s $1 million in pre-seed investment was mentioned by the CEO as he talked about developing a product that will revolutionize the Kenyan food industry. Kune’s sales pitch was to get quality meals at a reasonable price from a company that drives its motorbikes and owns and manages the whole supply chain.
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Kune intended to use the money by 2022 to build a factory, hire 100 female drivers, and buy 100 electric motorcycles. These meals would be directly delivered from Kune’s facilities to online, retail, and corporate customers. Among the investors in the company are Launch Africa Ventures, a pan-African venture capital firm, Century Oak Capital GmbH, and Consonance. Kune wanted to expand outside of Nairobi, the Kenyan capital before the embargo was prolonged.
The firm, which was established in December 2020 to provide ready-to-eat inexpensive meals, undertook a trial in Kenya in the first few months of 2021 before starting up full-time later in the year. The company’s CEO, Robin Reecht, attributed its inability to obtain money to the “economic slump and tightening up of the financial markets.” Later, Kune Food also took out a loan from a Kenyan bank for an unknown amount.
According to Kenya’s national statistics department, food prices reached all-time highs in May. Inflation in the nation is on the rise and reached a 27-month high last month as the cost of living index continued its upward trend. The business sold more than 55,000 meals last year and added 6,000 individual and 100 corporate clients.
Kune Foods will no longer have direct control over the manufacturing or order of their products through their website or app as of June 7. Instead, it will be run by outside delivery services like Bolt Food, Glovo, Jumia Foods, and Uber Eats.