UAE-based cloud kitchen operator iKcon has raised a $20 million Series A funding round 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 closing of this round increased iKcon’s total funding to date to $32 million.
Founded in 2019 in Dubai by Khalid Baareh (CEO) and Kareem Abughazaleh (COO), iKcon identifies as a cloud kitchen as-a-service operator, procuring, cooking and delivering food on behalf of restaurants and brand owners. It currently operates 15 cloud kitchens across the UAE and planning to launch its first cloud kitchen in Saudi Arabia. The company also plans to enter other countries in the region and is looking to establish 50 cloud kitchens in the near future.
“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 and regional expansion plan, and the development of iKcon’s proprietary technology stack,” said Baareh.
The company is also developing its technology to incorporate more data analytics, process automation and artificial intelligence.
The global food delivery industry is estimated to reach $360 billion by 2030. Regionally, the Middle East’s cloud kitchen sector has attracted increased interest and investment.
“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 the supporting iKcon’s growth story especially in penetrating the KSA market,” said Sheikh Mohamed Yousuf Naghi, chairman of MYN Group
iKcon currently partners with more than 70 regional and international restaurant partners such as Pinza, German Doner & Kebab, Wingsters, Salmontini, and Monkey Cookies to name a few with many more in the pipeline going live soon.
“The cloud kitchen space is an exciting industry that is poised for growth alongside the food delivery market which continues to benefit from Covid19 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," said Abdallah Yafi, founder and managing partner at B&Y Venture Partners.