Dubai-based startup Kitopi announced that it will expand its business in Jeddah, Saudi Arabia, starting this week, nearly a year after it raised $ 60 million in funding in the second funding round.
Jeddah will be the second city in which the platform has operated in the Kingdom after running successful operations in Riyadh.
Kitopi enables restaurants to open locations that are restricted to delivery services, by providing the necessary infrastructure and software with minimal capital overhead and time / as well as taking care of the entire customer experience journey: receiving and processing orders, cooking, deliveries, and managing customer feedback.
A renewed focus
The technology company currently operates more than seven kitchens in Riyadh and plans to open more than five kitchens in Jeddah by the end of the third quarter of 2021.
Kitopi also announced its willingness to develop alliances in the field of food, beverages, and restaurants with partners operating in the business center in the Red Sea region, providing them with the ability to expand outside the borders in less than two weeks.
The company leverages smart kitchen operation technology (SKOS), a kitchen operating system based on cloud computing, to help implement end-to-end ordering experience and improve customer experience.
With SKOS, Kitopi is able to deliver an order in less than 35 minutes, from the time the order is placed until the time the customer receives it.
The company intends to intensify the employment of more Saudi citizens across its operations in line with the Kingdom’s Vision 2030, with a focus on employing more women.
The company has raised $ 120 million since its founding in 2018, from multiple investors, including Knollwood and Lumia Capital.
“We are excited to work in Saudi Arabia, which we consider an important market for us, and we look forward to partnering with restaurants in Qatar, Bahrain, and Southeast Asia later this year,” the startup revealed in a statement.
The founder and CEO of the company, Mohamed Ballout, said in an interview quoted by Bloomberg that the startup is preparing to make a profit “this year, sometime very soon.”
Global Cloud Kitchen Marketplace
Projections indicate that the global cloud kitchen market will reach $ 2.63 billion by 2026, at a compound annual growth rate of 17.2%, compared to about $ 650 million in 2018, supported by a rise in online food delivery applications, and the increasing use of mobile phones and smartphones for food orders. According to the US market research and consulting firm Reports and Data.
Kitopi currently has more than 1,200 employees, with headquarters in Dubai and New York, with offices in the United Kingdom, Saudi Arabia, and Kuwait. Kitopi operates 30 kitchens in five countries and has partnered with more than 100 restaurants, including world-famous brands like Operation Falafel, Pizza Express, Right Bite, and UNDER500, to name a few. Through its partnership with Kitopi, UNDER500 was able to “double its revenue year-on-year and expand its reach to operate internationally”.