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Nairobi-based Foodtech Startup Kune Secures $1 Million Pre-seed Round

Startups

June 17, 2021, 2:22 p.m.

Nairobi-based foodtech startup Kune has announced that it has secured a $1 million pre-seed round to launch its on-demand food service in August.

The pre-seed round was led by Pan-African venture capital firm Launch Africa Ventures with other investors such as Century Oak Capital GmbH and Consonance, with a contribution from ecosystem management firm Pariti.

Founded in 2020 by Robin Reecht, Kune delivers freshly-made, ready-to-eat meals at affordable prices to Kenyans. In Kenya, getting tasty and affordable meals conveniently is almost an impossible task. One could use food couriers like Jumia, Glovo, or even Uber Eats, but an individual will have to pay at least $10. So to bridge the gap, Kune served more than 500 meals at an average price of $4. This tripled its customer base from 50 to 150.

“After three intensive months spent structuring the company, finding land for our factory, and hiring key team members, I started fundraising. I’m delighted that Kune has attracted this level of interest from investors who immediately saw the potential to grow Kune not only in Kenya but across Sub-Saharan Africa,” said Reecht.

Baljinder Sharma, director of Launch Africa Ventures, also said: “Launch Africa is excited to be leading the first round of financing for this exciting new startup in the Kenyan food sector. Leveraging the cloud kitchen model and owning the entire supply chain provides a massive growth and scaling opportunity for Kune Africa, and we are looking forward to seeing the business take off and grow”.

The startup has plans to launch fully in August, promising customers that delivery will be done on an average of 30 minutes daily.

To achieve this, Kune ensures that it owns the entire supply chain, from cooking to packaging to delivery with its drivers and motorbikes. In addition, they plan to internalize all production and human resources capacities. “That’s where Kune will put most of the funds to use going forward,” Reetch says.

Once launched, the company will build its fleet of 100 electric motorcycles by early 2022. In addition, there are plans to hire 100 female drivers.

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Verny Joy Author

Verny loves to write poetry, fiction and quotes. Her love for writing landed her in journalism. She loves gadgets and travelling to explore new places.

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