Kune Foodtech Startup Raises $1M Pre-Seed Funding

The Emerging Food Tech Landscape in Africa

Innovation within the food technology sector is experiencing global growth, yet remains in its nascent stages across the African continent. Currently, the number of African food-tech startups is limited, though the recent global pandemic has spurred the creation of a few additional ventures.

Kune: A New On-Demand Food Service

Kune represents one of the newest entrants into the African food-tech arena. The Kenyan-based company, established just six months ago, has recently secured $1 million in pre-seed funding to facilitate the launch of its on-demand food delivery service in August.

Investment Details

Launch Africa Ventures spearheaded the pre-seed funding round. Additional investors included Century Oak Capital GmbH and Consonance, alongside a contribution from the ecosystem management firm, Pariti.

Addressing a Market Gap

Founded in December 2020 by CEO Robin Reecht, Kune focuses on delivering freshly prepared, ready-to-eat meals at competitive prices. Reecht observed a challenge upon his arrival in Kenya from France in November 2020 – the difficulty in accessing affordable, convenient meal options.

“Upon arriving in Kenya, I inquired about affordable, quality food, and was consistently told it was unattainable,” Reecht explained to TechCrunch. “The options were limited to inexpensive street food of questionable quality, or pricier deliveries from platforms like Uber Eats, Glovo, or Jumia.”

From Pilot to Pause

Recognizing this market deficiency, Reecht initiated Kune with the aim of providing affordable, convenient, and flavorful meals. A pilot program was developed within a week, and with an initial waitlist of 50 customers, the venture gained momentum. Kune successfully sold over 500 meals, averaging $4 per order, and expanded its customer base to 150.

Customer enthusiasm led to $50,000 in funding to sustain operations. However, the rapidly increasing order volume soon overwhelmed the small team, reaching 50 orders daily. Rather than risk compromising quality, the team opted for a temporary pause to restructure.

“We began to experience difficulties fulfilling orders due to the complexities of food preparation in a limited kitchen environment,” Reecht stated. “It became clear that scaling responsibly required a more robust infrastructure.”

Restructuring and Expansion

The subsequent months were dedicated to restructuring the company, recruiting personnel, and constructing a factory capable of producing 5,000 meals per day. Upon readiness to raise further capital, Reetch noted a continued strong interest from both customers and investors.

Within two months, Kune successfully closed this funding round, representing one of the largest in East Africa and a notable achievement as a non-fintech company securing a seven-figure pre-seed investment on the continent.

A Hybrid Approach to Food Delivery

Within Kenya’s competitive restaurant and food delivery market, Kune aims to provide a novel solution for busy individuals in Nairobi, bridging the gap between the pricing of local roadside eateries (Kibandas) and the costs associated with on-demand delivery services from international companies.

Kune employs a hybrid model, integrating both cloud and dark kitchen concepts. Meals are prepared and packaged within its factory and then delivered directly to online, retail, and corporate clients.

Launch Africa’s Perspective

This hybrid approach was a key factor in Launch Africa’s investment decision. According to Baljinder Sharma, a director at the firm, “Leveraging the cloud kitchen model and controlling the entire supply chain presents a significant opportunity for growth and scalability for Kune Africa.” He further added, “We anticipate witnessing the business flourish and expand.”

Launch Plans and Supply Chain Control

Kune is scheduled to launch fully in August following the completion of its new factory. The company promises an average delivery time of 30 minutes daily, as detailed on its website.

To ensure this speed and quality, Kune maintains complete control over its supply chain, managing cooking, packaging, and delivery with its own drivers and motorcycles. “Our strategy centers on internalizing all production and human resource capabilities,” Reecht emphasized. The majority of the funds will be allocated to this effort, including the factory construction, which accounts for approximately 10% of the total investment, and the recruitment of a substantial team.

Reetch anticipates a team size of 100 employees by December, reflecting the operational intensity of the business.

Future Initiatives

By early 2022, the company intends to establish a fleet of 100 electric motorcycles. Furthermore, plans are in place to hire 100 female drivers.

Currently, Kune offers three daily meal options: two continental dishes and one international cuisine. Looking ahead, Kune plans to expand its offerings to include microwavable meals, weight management options, and retail meals, targeting customers in Europe and the United States. Reetch is particularly enthusiastic about introducing African food culture to Western markets.

He believes that Kenya, unlike many other nations, lacks a prominent food culture, referencing the absence of culinary programs similar to those found in other countries. Reetch envisions Kune becoming a leading culinary resource in Kenya.

“Kenya currently lacks a dedicated culinary show. We aim to fill this void by creating engaging content, including videos and articles on cooking techniques and the broader food industry,” he concluded.