Kune Food is officially leaving the Kenyan Market due to insolvency Techspace Africa has learned.
“Tomorrow we will have to close the company, we ran out of money completely. As you know we were supposed to receive an investment of about Sh30 million from a French investor. Yesterday, I learned from that investor that they will not invest that money, why on one side because we are already running out of money, the is not reassuring for them.” The Founder, Robin Reecht told employees in an impromptu meeting earlier today.
“For the past 6 months, we did all we could to reach profitability but that is something we have not succeeded in yet and they are afraid even if they invest we will not succeed to become profitable.”
Founded by the French entrepreneur in 2020, Kune has been a food delivery service that aimed to provide busy, modern Nairobians with access to freshly prepared meals at affordable prices, by promising to provide ready meals at half price, if not three times, less than the typical price of restaurants and fast food.
The would-be hybrid model combining both cloud and dark kitchen concepts has seemingly failed to take off.
Just a few weeks ago, Kune pivoted from the initial plan to internalize all production and human resources capacities and instead opted to exclusively sell on the very platforms it was here to disrupt.
“I spoke to 100 investors at least since the beginning of the year. I have exhausted my options. Am just not able anymore to raise money, it’s impossible.” The CEO says.
According to reports, Kune had been seeking an extra KES 400 Million to increase their production capacity and expand operations to more parts of Kenya. The managing director told Business Daily that the $1 Million (over KES 100Million) had been used to expand their factory capacity, build their research capabilities and strengthen their delivery system.
“I looked for some companies to buy Kune. I spoke to the CEO of Java, ArtCaffe, Nas Servair, Bidco, and several others, no company is interested to buy Kune.” The CEO told the devastated employees. “We don’t sell enough meals every day…We are still a niche product and so was unable to find an acquirer. Which I was trying to do to prevent you from losing your jobs and other investors from losing their money and the company.”
Update – Comment from Kune CEO
In a post on his LinkedIn, Kune CEO Robin Reecht says the startup sold more than 55,000 meals, and acquired more than 6,000 individual customers and 100 corporate customers. But at $3 per meal, it just wasn’t enough to sustain growth.
“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… Sad day. Kune Food closed down today.”