Dubai-based cloud kitchen startup iKcon has raised $20 million in a Series A round in order to support its expansion into Saudi Arabia.
According to the company statement, the round was led by regional investment groups including Mohamed Yousuf Naghi Group, AlTouq Group, Derayah Ventures, B&Y Venture Partners, AbdulMohsin Al Houkair Holding Group, and Nazer Group.
The latest round brings iKcon’s total funding to $32 million, and it will be used to help the company grow regionally and develop its technology.
“We are thrilled to be backed by leading regional investors and Venture Capital firms that share our vision and actively support our growth. The newly raised funds will be used to accelerate the KSA & regional expansion plan, and the development of iKcon’s proprietary technology stack. We are laser-focused on further developing our technology to accelerate the evolution of data analytics, process automation, and AI as a key differentiator in how we operate in our fast-growing sector. The food delivery space is growing rapidly and we are proud of our significant contribution towards our partners’ ambitions of growing their customer base and expanding their brand reach.”
“This is a vote of confidence for our team’s relentless efforts to improve our capabilities through ongoing attention to maintaining brand standards, consistency, and speed. We are constantly reinvesting in our operational excellence & training programs, and we expect to accelerate this as we continue to scale our reach,” said Mr. Kareem Abughazaleh, Co-Founder & COO at iKcon.
Mr. Abdallah Yafi, Founder and Managing Partner at B&Y Venture Partners commented, “The cloud kitchen space is an exciting industry that is poised for growth alongside the food delivery market which continues to benefit from COVID-19 tailwinds. At iKcon, B&Y is backing a hyper exceptional team – led by Khalid and Kareem – that we believe can build a dominant business in this space, thanks to superior technology and strong focus on delivering profitable growth.”
Founded in 2019, iKcon is a leading cloud kitchen as-a-service operator that procures, cooks, and delivers food on behalf of restaurants and brand owners. It currently operates 15 cloud kitchens across the UAE. The company has plans to enter other countries in the region and is targeting to rapidly grow its network to 50 cloud kitchens shortly. iKcon has partnered with well-known regional and international restaurant businesses such as Pinza, German Doner & Kebab, Wingsters, Salmontini, Monkey Cookies, and so on.