Indonesian cloud kitchen startup Yummy gets $12 million Series B led by SoftBank Ventures Asia

Yummy Corporation, which claims to be the largest cloud kitchen management company in Indonesia, has raised $12 million in Series B funding, led by SoftBank Ventures Asia. Co-founder and chief executive officer Mario Suntanu told TechCrunch that the capital will be used to expand into more major cities and on developing its tech platform, including data analytics.

Other participants in the round included returning investors Intudo Ventures and Sovereign’s Capital, and new backers Vectr Ventures, AppWorks, Quest Ventures, Coca-Cola Amatil X and Palm Drive Capital . The Series B brings Yummy Corporation’s total raised so far to $19.5 million.

Launched in June 2019, Yummy Corporation’s network of cloud kitchens, called Yummykitchen, now includes more than 70 HACCP-certified facilities in Jakarta, Bandung and Medan. It partners with more than 50 food and beverage (F&B) companies, including major brands like Ismaya Group and Sour Sally Group.

During COVID-19 movement restrictions, Suntanu said Yummykitchen’s business showed “healthy growth” as people, confined mostly to their homes, ordered food for delivery. Funding will be used to get more partners, especially brands that want to digitize their operations and expand deliveries to cope with the continuing impact of COVID-19.

The number of cloud kitchens in Southeast Asia has grown quickly over the past year, driven by demand for food deliveries that began increasing even before the pandemic. But for F&B brands that rely on deliveries for a good part of their revenue, running their own kitchens and staff can be cost-prohibitive. Sharing cloud kitchens with other businesses can help increase their margins.

Other cloud kitchen startups serving Indonesia include Hangry and Everplate, but these companies and Yummy Corporation are all up against two major players: “super apps” Grab and Gojek, which both operate large networks of cloud kitchens that have the advantage of being integrated with their on-demand delivery services.

Suntanu said Yummy’s main edge compared to other cloud kitchens is that it also offers fully managed location and kitchen operation services, in addition to kitchen facilities. This means Yummy’s partners, including restaurants and F&B brands, don’t need to hire their own teams. Instead, food preparation and delivery is handled by Yummy’s workers. The company also provides its clients with a data analytics platform to help them with targeted ad campaigns and making their listings more visible on food delivery apps.

In a statement, Harris Yang, Southeast Asia associate at SoftBank Ventures Asia, said the firm invested in Yummy because “given the company’s strong expertise in the F&B industry and unique value proposition to brands, we believe that Yummy will continue to be the leader in this space. We are excited to support the team and help them scale their business in this emerging sector.”

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Kbox Global: Ghost kitchen startup raises second funding of the year

  • Ghost kitchen startup Kbox Global has raised £12 million ($15 million) in a fresh funding round from Balderton Capital. 
  • The London-based company raised a seed round earlier this year but has opted to raise further funds amid a continuing boom in growth for food delivery and restaurants. 
  • “There’s a movement towards people understanding that you can get great food at home and we as a company have benefited from that,” Salima Vellani, Kbox founder and CEO, told Business Insider in an interview. “Sales went up 300-500% during lockdown, you can survive and excel if you know how to deliver food in the right way.”
  • Visit Business Insider’s homepage for more stories.

The popularity of food delivery apps like Uber Eats and Deliveroo has led to a surge in investment in startups providing complementary services, be it rentable kitchen space or virtual restaurant brands.

The global food delivery market is estimated to be worth $365 billion by 2030, with delivery unicorns like Deliveroo already valued at over $2 billion. Similarly, the market for ghost kitchens (kitchens which exist predominantly for food delivery) could be worth $1 trillion by 2030 according to Euromonitor. 

London-based startup Kbox Global has raised its second funding round of the year, a £12 million ($15 million) deal with VC investor Balderton Capital amid a claimed boom in growth. 

“There’s a movement towards people understanding that you can get great food at home and we as a company have benefited from that,” Salima Vellani, Kbox founder and CEO, told Business Insider in an interview. “Sales went up 300-500% during lockdown, you can survive and excel if you know how to deliver food in the right way.”

Kbox raised a £5 million seed round from Hoxton Ventures in July but was subsequently inundated with investor interest, according to Vellani, who said the company’s seed round was already three times oversubscribed. 

“After we announced the round, twenty to thirty VCs from around the world came to us,” she added. “We knew we would grow fast and needed some money. The process took two weeks to term sheet and investors needed to bend over backwards to make it work because I have a business to run.”

The company is expanding its UK presence and also plans to enter the US market in the coming months. “The US is a tough nut to crack but food is universal,” Vellani added.

Check out Kbox’s (redacted) pitch deck below:

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New ‘virtual kitchen’ startup aims to put idle kitchens to use for delivery

The former boss of Q-Park and B&Q in Ireland has launched a ‘virtual kitchen’ startup to put under-utilised commercial kitchen space to use for deliveries.

Virtual kitchens, also known as dark or ghost kitchens, use cooking spaces or off-site kitchens to prepare food strictly for delivery, often under a dedicated online brand.

Zimbly Eat was co-founded by Mark Howard, a former managing director of Q-Park Ireland and general manager of B&Q. He said the startup has signed up five restaurants in Bray for the initial launch, with Malahide to follow in the coming weeks.

This food delivery model has attracted much attention from investors, with Peter Thiel’s Founders Fund last week leading a $20m (€16.9m) round in Virtual Kitchen, while former Uber chief Travis Kalanick founded CloudKitchens, backed by Saudi Arabia’s Public Investment Fund.

Howard said the model can create a separate revenue stream for restaurants by preparing pre-ordered ready meals and dishes under Zimbly Eat’s brands during quiet periods.

“It is the early part of the week when they’re totally underutilised. From our conversations, they run even less than 40pc on those days, so there’s absolutely plenty of scope,” he said.

Zimbly Eat has partnered with Danish delivery startup Doorhub for logistics. Doorhub country manager Leanne Purcell said it will be working with the company on expanding in the rest of Ireland and “hopefully into the UK soon afterwards because we’ve just launched in the UK ourselves”.

It will face stiff competition in the Irish market from delivery giants like Just Eat and Deliveroo, but Howard said there’s space to carve out a niche.

“Because it’s our brand, we will do active marketing on behalf of the clients under the Zimbly brand, whereas other aggregators wouldn’t do that.”

The company has received early-stage backing from UK investor Harish Pillai, who comes from a background in the oil industry.

Howard added that after gathering an initial customer base, the “next step is going to investors and start raising some funds”.

Sunday Indo Business

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For this Bengaluru startup, COVID-19 is the time to do interior design

a person sitting at a table using a laptop computer: For this Bengaluru startup, COVID-19 is the time to do interior design

© Pranav Hegde
For this Bengaluru startup, COVID-19 is the time to do interior design

Sequoia Capital and JSW Ventures-backed startup HomeLane is giving a fresh lease of life to interior design during COVID-19 using its proprietary 3D design technology platform called SpaceCraft.

“We work with the dimensions and the space you provide, incorporate the design layout you have chosen, and merge the ideas to show you how your finished home will look like,” Srikanth Iyer, CEO & Founder of the Bengaluru-based, told Moneycontrol.

How does it work?

Once the design is finalised through the virtual meet, HomeLane designers will visit your home to take the measurements. Then, the actual work will start.

HomeLane has its team of designers, carpenters and other workers to carry out the task.

Since its COVID days now, the company is visiting homes only in those cities like Bengaluru and Chennai, where lockdown restrictions have been eased.

In cities like Mumbai and Delhi NCR, it is only taking virtual orders. The work will start when the lockdown is lifted or once housing societies allow outsiders in.

In order to ensure that virtual meetings are as effective as in-person meetings in showrooms, HomeLane has introduced a few changes to SpaceCraft, Iyer said.

For example, virtual showroom tours and product videos are used as a substitute to in-person visits to experience centres. Here, customers get to see the design expert’s profile and 100 percent visibility into their actions while using the tool (while selecting colours or material) to enable easy and transparent decision-making.

The pricing mechanism works likes this. “Virtually, when we design the floorplan and interiors selected by you, SpaceCraft will instantly show you the exact price. Depending on what you choose, the price will keep going up and down, just like a meter,” Iyer explained.

The company has a 45-day deadline for projects.

How is it faring during lockdown?

During the lockdown, when HomeLane’s experience centres remained closed, the company received more than 350 new orders, Iyer said.

“In terms of new orders, we have crossed 80 percent of the pre-COVID levels, and from a revenue perspective, we have crossed 100 percent,” Iyer said.

In fact, HomeLane designers have met more than 2,500 families online during the period.

The beginnings

HomeLane was founded in 2014 by Rama Harinath, Srikanth Iyer, and Vivek Parasuram.

Harinath was Vice President at TutorVista. He has also worked with Dell Hewelett-Packard and Cognizant. Currently, Iyer is also a venture partner at Unitus Ventures. He has had two past jobs including Co-Founder, Edurite Technologies at TutorVista. Parasuram is also a partner at Ravint Ventures. Prior to this, he was associated with Bello Interiors and New Dimensions.

HomeLane is backed by venture capital firms like Sequoia Capital, JSW Ventures, Accel Partners, Pidilite Group, Evolvence India Fund (EIF), and FJ Labs.

It offers personalised design service to customers through their panel of interior designers.

At present, it operates in 10 cities, including Bengaluru, Chennai, Hyderabad, Mumbai and Delhi-NCR. It has 19 experience

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