iKcon: Cloud Kitchen Business Of The Year | MENA startups, innovation, and tech news

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iKcon: Cloud Kitchen Business Of The Year

Cloud kitchens, sometimes known as ghost kitchens, are commercial facilities that prepare meals solely for delivery and do not offer dine-in or takeout services.

ABOUT
iKcon was founded in early 2019 to meet the rising need for food delivery in the Middle East. iKcon runs 15 cloud kitchens in the UAE that handle everything from food procurement to cooking and delivery on behalf of restaurants and brand owners. With plans to open its first cloud kitchen in Saudi Arabia, the firm also eyed the expansion into other nations in the region, with the goal of reaching 50 cloud kitchens in the near future.

SERVICE
If a restaurant or brand wishes to expand its reach in one of the locations where iKcon operates, they may partner with them, and iKcon will handle everything on their behalf, including delivering meals to clients from one of its cloud kitchens. It now has 14 kitchens and intends to expand to 50 in the near future. Saudi Arabia is where the firm is launching its regional growth. It plans to establish four new kitchens in Riyadh, Jeddah, and Sharjah, according to its website.

WORD FROM THE FOUNDER
“One of the major challenges that restaurants and food entrepreneurs confront is the financial and operational burden of expanding,” said Khalid Baareh, Co-Founder and CEO. Another significant concern is their capacity to use technology to enhance their operating skills. Through unique technology, operational know-how, and a love for high-quality food, iKcon’s business strategy addresses both of these challenges. I’m pleased with the strong and experienced team we’ve put together, which enables us to execute flawlessly and maintain our development trajectory in one of the fastest-growing delivery markets.”

“Driven by operational excellence and technology, iKcon operates as a franchisee on behalf of its partner restaurants and brand owners,” said Kareem Abughazaleh, Co-Founder. By extending their reach inside the same city, within the same nation, and across borders, we enable everyone to adapt their offering to a new era of food delivery.”

FUNDINGS
Ikcon has received $10 million in investment, including a $5 million pre-series A round-headed by Arzan VC, AlTouq Group, and Nazer Group, among other well-known investors, recently in 2020.

Mohamed Yousuf Naghi Group, AlTouq Group, Derayah Ventures, B&Y Venture Partners, AbdulMohsin Al Houkair Holding Group, and Nazer Group led a $20 million Series A fundraising round headed by regional investment firms. With the completion of this round, iKcon has now raised $32 million in total financing, this year (2021) in March.

QUOTES FROM SHAREHOLDERS

Hasan Zainal, Managing Partner- Arzan VC
Arzan is dedicated to working with motivated and talented entrepreneurs to assist them to build their creative and technology-focused businesses. We are ecstatic with the considerable progress the iKcon team has made since its start, and we are dedicated to assisting them in realising their goals.

We think that iKcon’s business model is the way of the future in the food and beverage industry, with tremendous growth potential. Furthermore, it has already demonstrated resiliency in the face of adversity.

AbdulMohsen AlTouq, CEO- AlTouq Group
We are ecstatic about our investment in what we consider to be the region’s best cloud kitchen solution provider, driven by a dedicated and knowledgeable staff. The cloud kitchen paradigm is fast changing the F&B industry as a whole. The technology-driven strategy and operational expertise of iKcon will enable its clients to develop faster in our rapidly expanding regional food delivery industry.

 

According to Statista, the worldwide ghost kitchen industry will be worth $71.4 billion by 2027, up from $43 billion in 2019. According to research by RedSeer Consulting, cloud kitchen revenues in the UAE and Saudi Arabia increased by 160% year over year to more than $65 million in 2019.

The notion of a cloud kitchen (also known as a ghost kitchen) is gaining traction as a unique tech-enabled option for restaurants to save expenses while yet growing considerably. Multiple businesses can be housed on platforms like iKcon, all of which operate under one roof and act as virtual restaurants.

As the Middle East’s meal delivery business gets more lucrative, cloud-kitchen startups have grown popular among venture capitalists and other investors.

Kitopi, located in Dubai, received $60 million in Series B financing last year, claiming that the cash will allow it to open 100 more sites by the end of the year.

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