Cloud Kitchen platform iKcon raises $20M Series A funding round
iKcon, a Dubai-based tech-enabled cloud kitchen as a service operator, has raised announced its $20M Series A funding round today.
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.
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iKcon was founded in Dubai in early 2019, by Khalid Baareh (CEO) and Kareem Abughazaleh (COO), to address the growing demand for food delivery across the Middle East. 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 and is imminently launching its first cloud kitchen in KSA. The company also plans to enter other countries in the region and is targeting to rapidly grow its network to 50 cloud kitchens in the near future.
Khalid Baareh, Co-Founder and CEO said, “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 KSA & regional expansion plan, and the development of iKcon’s proprietary technology stack.”
Kareem Abughazaleh, Co-Founder & COO commented, “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”.
Sheikh Mohamed Yousuf Naghi, Chairman of MYN Group stated, “Given our extensive experience in the F&B sector, we are excited and thrilled about our investment in what we believe to be the leading cloud kitchen solution provider in the region, led by a passionate and highly experienced team. The iKcon model is the future of the F&B industry with superior growth potentials. We are ready and proud to play an active role in supporting iKcon’s growth story especially in penetrating the KSA market.”
The food delivery industry is growing at an exponential rate and estimated to reach $360B by 2030. The regional dynamics are very attractive with young demographics, high mobile penetration, and fast adoption of online food delivery, making MENA’s food delivery market among the fastest growing in the world, the startup states.
Faris AlRashed, Chairman of the Board at Derayah Ventures added, “We are big believers in the unique business model the team behind iKcon has built which perfectly fits Derayah’s mission of backing innovative business models run by driven founders. Technological innovation tackling all industries is the new norm and we truly believe the future of the rapidly transforming F&B sector is here. We are long-term partners and ready to support the management team to achieve their growth and technology plans.”
iKcon currently partners with 70+ well-known regional and international restaurant partners such as Pinza, German Doner & Kebab, Wingsters, Salmontini, and Monkey Cookies, with more in the pipeline going live soon.
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