Tech

Cloud cooking startup CloudEats raises more capital to accelerate expansion in Southeast Asia


A cloud kitchen – also known as a ghost kitchen or shared kitchen – offers restaurateurs and food entrepreneurs commercial kitchen space at a reduced cost for food delivery and takeout. This trend revolves around the restaurant industry. More and more food entrepreneurs are turning to cloud kitchens to reduce operating costs and take advantage of the explosive growth in food delivery.

A Manila-based startup called CloudEats, which operates cloud kitchens across the Philippines and Vietnam, has just raised a $7 million Series A expansion led by Nordstar to accelerate the digitalization of foodservice in Southeast Asia .

After its successful launch in Vietnam earlier this year, the startup plans to further penetrate Southeast Asian countries such as Thailand, Malaysia and Indonesia in 2023, said co-founder and CEO Kimberly Yao. in an interview.

“The massive growth of our business in Vietnam over the past two quarters is very encouraging,” Yao said. “We are applying best practices and key learnings to our next market launch.”

Asia’s cloud kitchen market is expected to grow 14.2% annually from 2021 to 2027; the Southeast Asia food delivery market is expected to reach $49.7 billion by 2030, from $15.2 billion in 2021.

The startup had seven cloud kitchen locations in the Philippines when it launched its Series A in October 2021; it works now 25 ghost kitchens across the Philippines and Vietnam, Yao told TechCrunch. Its revenue volume has increased fourfold since April this year compared to October last year, according to Yao.

The latest funding will also allow CloudEats to grow its brands, grow its team, and double its investment in shared kitchen technology.

CloudEats co-founder Iacopo Rovere said the company’s primary focus over the next 12 months will be to advance its suite of integrated restaurant SaaS solutions and strengthen brand building and marketing efforts. marketing. He now has more than 30 brands in the Philippines and more than 20 in Vietnamincluding Burger Beast, 24/7 Eats, Sulit Chicken, Pia’s Kitchen and Healthy Appetite, and is expanding its portfolio.

Cloud Eats

Picture credits: Cloud Eats

CloudEats has a hybrid model of cloud kitchen and cloud restaurant where the company is not only an operator of the infrastructure but also the owner of the digital native brands.

“Today, we own and operate more than 50 online-optimized restaurant brands that we build and manage exclusively in the Philippines and Vietnam,” Yao told TechCrunch. “Our exclusive smart kitchen technology integrated with food delivery platforms allows us to grow and grow the business quickly. »

Yao, a serial entrepreneur with over a decade of experience in retail R&D and on-demand e-commerce, co-founded CloudEats in 2019 with former Foodpanda CEO Iacopo Rovere, who has extensive experience serving food delivery in Berlin and India. CloudEats says it has served over 2.5 million orders.

With its previous round of $5 million, the latest capital brings its total funding to $14 million.

“As a global investor in the cloud kitchen space, we are capturing white space in the Southeast Asian food delivery market through our investment in CloudEats,” said Kimberley Ong, Director at Nordstar. “CloudEats delivers the best brand and kitchen savings we’ve seen in the market, and it’s all down to not just the sophisticated technology and backbone of the company’s operations, but also the unique team data and partnership-driven approach to brand building.”

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