Kenya-based food-tech startup Kune shuts down attributable to lack of funding

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In a LinkedIn submit on Wednesday, Robin Reecht, the startup’s founder and CEO stated, “Sad day. Kune Food closed down today. With the current economic downturn and investment markets tightening up, we were unable to raise our next round. Coupled with rising food costs deteriorating our margins, we just couldn’t keep going.”

In 2021 Kune Food raised $1 million in pre-seed funding and borrowed an undisclosed quantity from a financial institution in Kenya. The pre-seed funding was led by pan-African enterprise capital agency Launch Africa Ventures with participation from Century Oak Capital GmbH and Consonance.

The firm began as a web based restaurant or internet-based kitchen with the promise of getting ready and delivering freshly made meals at inexpensive costs to on-line purchasers. However, after an unsuccessful try to boost recent capital ($3.5 million) to outlive in a aggressive market, the startup pivoted to utilizing apps like Uber Eats, Glovo and Bolt Food to fulfil their orders.

In the LinkedIn submit, Reecht stated Kune Food offered greater than 55,000 meals and bought greater than 6,000 particular person clients and 100 company clients within the final 12 months. “But at $3 per meal, it just wasn’t enough to sustain our growth. Many things could have been done differently, better certainly. The coming months will allow us to reflect on Kune’s failure, and I hope to share about it when the time will be right.”

Health tech and Logistics corporations attracted massive investments from VCs in 2021. However, many have discovered it laborious to boost funding previous the Series A spherical. Both sectors, which had been pitted as the subsequent massive factor after Fintech in Africa, at the moment are seen as victims of their very own success.


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