Kune Food closes just one year after opening in Kenya

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Kune, a Kenyan startup that started as an on-demand food delivery service and then changed tack over the past few months to become an online restaurant, closed today, affecting 90 employees, some of whom were hired as recently as last month. .

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The startup was founded in December 2020 and tested in Kenya in the first months of 2021 before officially launching later that year.

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On LinkedIn mailRobin Richt, founder and CEO of the startup, announced the closure after failing to raise funds to keep it running, while blaming “the economic downturn and tightening investment markets.”

A year ago Kun Food raised $1 million in pre-landing 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 boost its production capacity.

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“Since the beginning of the year, we have sold more than 55,000 meals, attracted more than 6,000 individual clients and 100 corporate clients. But at $3 a meal, it wasn’t enough to sustain our growth… Combined with rising food prices hurting our bottom line, we just couldn’t keep going,” he wrote.

The following is Reicht’s full statement.

Sad day. Kune Food closed today.

Since the beginning of the year, we have sold more than 55,000 meals, attracted more than 6,000 individual customers and 100 corporate customers. But $3 a meal was not enough to keep us growing.

Due to the current economic downturn and tighter investment markets, we were unable to raise our next round. Combined with rising food prices hurting our bottom line, we just couldn’t keep going.

My first thoughts are about my team. You have put your heart and soul into creating Kune, which is loved by so many people. I’m very sorry it didn’t work out.

To all my fellow entrepreneurs: Please check Kune’s “staff page” on LinkedIn and see if your recruiting needs can be met by some of our team members. I know these are difficult times for you too. But they are amazing people who will bring great value to your company. You can call me if you need information about a Kune employee.

My second thought concerns our investors. Some of you have joined the Kune journey when it was just me and the chef delivering food on foot to the nearest office. Some others joined later and helped us grow into a food technology startup with a technology platform, factory, kitchen studio, 7 distribution centers, 6,000 customers and a team of 90 people. Not only have you invested in Kune, but you have given us your time, breadth of mind, connections and emotional support. I am very sorry that Kuhne’s vision did not come true. Betraying your trust is something I will never forgive myself.

My third thought is about suppliers, customers, bankers and partners of every kind who have supported us along the way. I sincerely regret the result.

Much could have been done differently, better of course. The coming months will allow us to reflect on the failure of Kune, and I hope to speak about 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 with us.

Yours sincerely,
Robin

This is an evolving story.


Credit: techcrunch.com /

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