An on-demand food delivery firm located in Kenya has shut down, impacting 90 workers, some of whom were employed as recently as last month, after altering course to become an online restaurant in the past few months.
Founded in December 2020, the company ran a trial in Kenya in the first half of 2021 before launching full-scale production in the second half of the year.
CEO and co-founder Robin Reecht announced the company’s closure in a LinkedIn post, citing the “economic slump and investment markets tightening up” for the failure to secure the necessary cash.
Pre-seed investment of 1 million was secured by Kune Food a year ago, as well as an unknown loan from a Kenyan bank. This year, the firm said it was seeking 3.5 million from local and foreign investors to increase manufacturing capacity.
To far this year, we’ve sold more than 55,000 meals to over 6,000 individual consumers and 100 business clients. At a cost of 3 each lunch, we couldn’t keep up with our rapid expansion… We couldn’t keep up with growing food prices and shrinking profit margins,” he added.
Sad day. Kune Food closed down today.
Since the beginning of the year, we sold more than 55,000 meals, acquired more than 6,000 individual customers and 100 corporate customers. But at 3 per meal, it just wasn’t enough to sustain our growth.
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.
My first thoughts go to my team. You put your heart and soul into building the Kune that so many people loved. I’m deeply sorry it didn’t work out.
To all my fellow entrepreneurs, please check the Kune “employee page” on LinkedIn and see if your recruitment needs could be filled by some of our team members. I know those are difficult times for you too. But they are terrific people who will bring tremendous value to your company. You can call me if you need any reference on a Kune employee.
My second thought goes to our investors. Some of you joined the Kune journey when it was just me and a Chef, delivering food on foot to a nearby office. Some others joined later and helped us grow into a foodtech startup with a tech platform, a factory, a kitchen studio, 7 distribution hubs, 6000 customers, and a team of 90 people. Not only did you invest in Kune but you gave us your time, brain-width, connections, and emotional support. I am deeply sorry that Kune’s vision didn’t come true. To betray your confidence is something for which I will never forgive myself.
My third thought goes to suppliers, customers, bankers, and partners of any sort who supported us along our way. I’m sincerely sorry for the outcome.
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.
If you know anyone who could be interested to acquire Kune’s IP or Assets, please reach out by PM.