Companies

Food startup Kune seeks Sh400m in new fundraising

kune

Kune Head of Production Brian Samoei showing a recyclable carton box lunch box outside the company's kitchen area at Maua Gardens in Kileleshwa, Nairobi. PHOTO | POOL

Summary

  • The company has announced plans to expand to other towns in Kenya in the next 12 months as the demand for home-made healthy meals on order gains momentum.
  • It has also begun commercial operations with four meal hubs located around Nairobi.
  • The company presently has the capacity to produce and deliver up to 8,000 meals per day with food prices ranging between Sh250 to Sh360 for a balanced meal including a fruit salad.

Kune, a Kenyan food start-up, is looking to raise Sh400 million ($3.5 million) from local and international investors to increase production capacity.

The company has announced plans to expand to other towns in Kenya in the next 12 months as the demand for home-made healthy meals on order gains momentum.

It has also begun commercial operations with four meal hubs located around Nairobi.

The locations include Nairobi’s central business district along University Way, Sameer Business Park on Mombasa Road, Thika Road and Langata Road that will be fully operational by the end of March.

“Currently, Kune is delivering over 400 meals a day with a projection to be serving over 1,000 meals a day by the end of this quarter. Our factory production and delivery infrastructure are fully in place for us to scale our operations with our unique offering,” said Faith Mwendia, the managing director of Kune.

She added that Sh113.74 million ($1 million) pre-seed funding raised last year has enabled the company to develop its factory capacity, boost research capabilities and strengthen the delivery system.

“We have invested heavily in research and development where we have a fully dedicated in-house team working consistently on our menu advancement so as to meet the changing demands of customers while also bridging the nutrition and price gap,” added Ms Mwendia.

The investment in its own production and own mobile app has also enabled it to reduce infrastructure costs with the benefits passed on to the consumer through affordable pricing of meals.

The company presently has the capacity to produce and deliver up to 8,000 meals per day with food prices ranging between Sh250 to Sh360 for a balanced meal including a fruit salad.

Kune sources for food from local suppliers and employs production efficiencies. At the moment it is serving three balanced-diet meals (two non-vegetarian and one vegetarian) a day.

The food industry is witnessing the entry and expansion of local and foreign players, attracted by growing spending on restaurant and takeout food by the country’s rich and middle-class households.

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