Kune, a Kenya-based startup that began as an on-demand food delivery service before changing tack in recent months to become an online restaurant, closed today, affecting 90 employees, some of whom They were hired last month. .
The startup was founded in December 2020 and ran a test run in Kenya in the first few months of 2021 before officially starting operations later that year.
In a LinkedIn post, Robin Reecht, the startup’s founder and CEO, announced the closure after failing to raise funds to keep operations going, while blaming the “economic downturn and tightening investment markets.”
A year ago, Kune Food raised $1 million in seed funding and also borrowed an undisclosed amount from a bank in Kenya. Earlier this year, the startup said it was raising $3.5 million from local and international investors to increase its production capacity.
“Since the beginning of the year, we have sold more than 55,000 meals, acquired more than 6,000 individual clients and 100 corporate clients. But at $3 a meal, it just wasn’t enough to sustain our growth… Coupled with rising food costs hurting our margins, we just couldn’t continue,” he wrote.
Below is Reecht’s full statement.
Sad day. Kune Food closed today.
Since the beginning of the year, we have sold more than 55,000 meals, acquired more than 6,000 individual clients and 100 corporate clients. But at $3 a meal, it wasn’t enough to sustain our growth.
With the current economic downturn and investment markets tightening, we were unable to raise our next round. Coupled with rising food costs hurting 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 am deeply sorry that it did not work.
To all my fellow employers, check out Kune’s “employee page” on LinkedIn and see if any of our team members can meet your hiring needs. I know those are tough times for you too. But they are fabulous people who will bring great value to your company. You can call me if you need any reference about a Kune employee.
My second thought goes to our investors. Some of you joined Kune’s journey when it was just me and a Chef, delivering food on foot to a nearby office. Others joined later and helped us become a foodtech startup with a technology platform, a factory, a kitchen studio, 7 distribution centers, 6,000 customers, and a team of 90 people. He not only invested in Kune, but also gave us his time, breadth of brain, connections, and emotional support. I deeply regret that Kune’s vision did not come true. Betraying your trust is something I will never forgive myself for.
My third thought goes to the suppliers, customers, bankers and partners of any kind who supported us on our way. I sincerely regret the result.
Many things could have been done differently, better without a doubt. The next few months will allow us to reflect on Kune’s failure, and I look forward to sharing it when the time is right.
If you know someone who might be interested in acquiring Kune’s intellectual property or assets, please get in touch via private message.
This is a developing story.