Startups

Kenya-based food-tech startup Kune shuts down due to lack of funding – Business Insider Africa


In a LinkedIn post on Wednesday, Robin Reecht, the startup’s founder and CEO said, “Sad day. Kune Food closed down today. 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.”

In 2021 Kune Food raised $1 million in pre-seed funding and borrowed an undisclosed amount from a bank in Kenya. The pre-seed funding was led by pan-African venture capital firm Launch Africa Ventures with participation from Century Oak Capital GmbH and Consonance.

The company started as an online restaurant or internet-based kitchen with the promise of preparing and delivering freshly made meals at affordable prices to online clients. However, after an unsuccessful attempt to raise fresh capital ($3.5 million) to survive in a competitive market, the startup pivoted to using apps like Uber Eats, Glovo and Bolt Food to fulfil their orders.

In the LinkedIn post, Reecht said Kune Food sold more than 55,000 meals and acquired more than 6,000 individual customers and 100 corporate customers in the last year. “But at $3 per meal, it just wasn’t enough to sustain our growth. 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.”

Health tech and Logistics firms attracted large investments from VCs in 2021. However, many have found it hard to raise funding past the Series A round. Both sectors, which were pitted as the next big thing after Fintech in Africa, are now seen as victims of their own success.



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