Dubai-based cloud kitchen startup iKcon, has raised $5 million in a pre-Series A round led by Arzan VC, AlTouq Group and Nazer Group among other investors. It brings the total amount raised by the company to $10 million.
Founded in Dubai in early 2019, by Khalid Baareh (CEO) and Kareem Abughazaleh (COO), iKcon operates 10 cloud kitchens across the UAE, with plans to expand its network of kitchens to 30.
“One of the big issues that restaurants and food entrepreneurs face is the financial and operational burden of expanding. Another major issue is their ability to adopt technology to improve their operational capabilities. iKcon’s business model solves both of those issues through its proprietary technology, operational know-how and a passion for quality food,” said Khalid Baareh, co-Founder and CEO of iKcon
According to Baareh, the funding will enable the company to expand its regional footprint and further strengthen its proprietary technology. “We plan on launching iKcon’s Series A round in Q4 2020. We are laser focused on developing proprietary technology to accelerate the evolution of data analytics, process automation and AI as a key differentiator in our fast-growing space,” added Khalid.
The cloud kitchen space has seen several new players emerge in the GCC over the past couple of years, tapping into the growth of online food delivery in the region.
“Driven by operational excellence and technology, iKcon acts as a franchisee on the behalf of its partner restaurants and brand owners. We enable each to adjust their offering to a new era of food delivery by extending their reach within the same city, within the same country and across borders,” said Kareem Abughazaleh, co-Founder and chief operating officer (COO) at iKcon.