Kenya-based meals tech startup Kune is closing because of lack of funding

Kenya-based meals tech startup Kune is closing because of lack of funding

In a LinkedIn publish Wednesday, Robin Reecht, the startup’s founder and CEO, mentioned, “Unhappy day. Kune Meals is closed at present. Given the present financial downturn and bettering asset markets, we have been unable to high up our subsequent spherical. Coupled with rising meals prices that have been hurting our margins, we simply could not go on.”

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

The corporate began out as a web based restaurant or internet-based kitchen with a promise to arrange and ship freshly ready meals at inexpensive costs to on-line clients. Nonetheless, after an unsuccessful try to boost contemporary capital ($3.5 million) to outlive in a crowded market, the startup turned to utilizing apps like Uber Eats, Glovo, and Bolt Meals to satisfy its orders .

Within the LinkedIn publish, Reecht mentioned Kune Meals had bought greater than 55,000 meals within the final 12 months and bought greater than 6,000 particular person clients and 100 company clients. “However $3 per meal simply wasn’t sufficient to maintain our development. So much might have been carried out otherwise, actually higher. The approaching months will enable us to mirror on Kune’s failure and I hope to report on that when the time comes.”

Well being expertise and logistics corporations attracted massive investments from enterprise capitalists in 2021. Nonetheless, many discovered it troublesome to boost funds after the Sequence A spherical. Each sectors, which have been seen 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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