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

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

A cloud kitchen, also known as a ghost kitchen or shared kitchen, offers restaurant owners and food entrepreneurs commercial kitchen space at a reduced cost for food delivery and takeout. This trend has been making its way around the restaurant industry. More food entrepreneurs are turning to cloud kitchens to lower their operating costs and capture the explosive growth of food delivery.

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

Following 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, co-founder and CEO Kimberly Yao said in an interview.

“The massive growth of our business in Vietnam over the last two quarters is very encouraging,” said Yao. “We are taking best practices along with key learnings for our next market launch.”

The cloud kitchen market in Asia is forecast to grow by 14.2% per year between 2021 and 2027; The food delivery market in Southeast Asia is expected to reach $49.7 billion by 2030, up from $15.2 billion in 2021.

The startup had seven cloud kitchen locations in the Philippines when it raised its Series A in October 2021; Now it works 25 ghost kitchens in the Philippines and Vietnam, Yao told TechCrunch. His income volume in Vietnam has grown 4 times from April this year to October last year, according to Yao.

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

CloudEats co-founder Iacopo Rovere said the company’s key focus in the next 12 months will be advancing its suite of integrated SaaS solutions for foodservice and strengthening branding and marketing efforts. now you have more than 30 brands in the Philippines and more than 20 in Vietnamwhich includes Burger Beast, 24/7 Eats, Sulit Chicken, Pia’s Kitchen and Healthy Appetite, and is expanding its portfolio.

Cloud Eats

Image credits: Cloud Eats

CloudEats has a hybrid cloud kitchen and cloud restaurant model 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 create and manage exclusively in the Philippines and Vietnam,” Yao told TechCrunch. “Our patented smart kitchen technology Integration with food delivery platforms allows us to scale and grow the business quickly.”

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

Along with his previous round of $5 million, the latest capital brings his total funding to $14 million.

“As a global investor in the cloud kitchen space, we are capturing the white space in the Southeast Asian food delivery market through our investment in CloudEats,” said Kimberley Ong, director of Nordstar. “CloudEats generates the best branding and kitchen-level economics we’ve seen in the market, and all of this is due not only to the company’s sophisticated technology and operations backbone, but also to the team’s unique data. and the partnership-based approach to brand building.”

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