Dubai cloud kitchen operator secures more funding for Gulf expansion

The round was led by regional investment groups including Mohamed Yousuf Naghi Group, Al Touq Group, Derayah Ventures, B&Y Venture Partners, AbdulMohsin Al Houkair Holding Group and Nazer Group.

The successful closing of this round increased iKcon’s total funding to date to $32 million, the company said in a statement.

Khalid Baareh, co-founder and CEO, said: “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 Saudi and regional expansion plan, and the development of iKcon’s proprietary technology stack.”

iKcon, which was founded in Dubai in early 2019 by Baareh and COO Kareem Abughazaleh to address the growing demand for food delivery across the Middle East, procures, cooks, and delivers food on behalf of restaurants and brand owners. 

It currently operates 15 cloud kitchens across the UAE and is imminently launching its first cloud kitchen in Saudi Arabia. The company said it also plans to enter other countries in the region and aims to rapidly grow its network to 50 cloud kitchens in the near future.

Abughazaleh said: “This is a vote of confidence for our team’s relentless efforts to improve our capabilities through an ongoing attention to maintaining brand standards, consistency, and speed. We are constantly reinvesting in our operational excellence and training programs, and we expect to accelerate this as we continue to scale our reach.”

iKcon currently operates 15 cloud kitchens across the UAE and is imminently launching its first cloud kitchen in Saudi Arabia

With more than 650 employees, iKcon currently partners with over 70 regional and international restaurant partners such as Pinza, German Doner & Kebab, Wingsters, Salmontini, and Monkey Cookies with many more in the pipeline.

“We are big believers in the unique business model the team behind iKcon has built which perfectly fits Derayah’s mission of backing innovative business models run by driven founders. Technological innovation tackling all industries is the new norm and we truly believe the future of the rapidly transforming F&B sector is here,” said Faris AlRashed, chairman of Derayah Ventures.

Khalid Baareh (left), iKcon co-founder and CEO and COO Kareem Abughazaleh

“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,” added Abdallah Yafi, founder and managing partner at B&Y Venture Partners.

The funding announcement comes as the food delivery industry is growing at an exponential rate and estimated to reach $360 billion by 2030.