Cloud Kitchen – also known as Ghost Kitchen or Shared Kitchen – provides restaurant owners and food entrepreneurs with low-cost commercial kitchen space for food delivery and takeout. This trend is making rounds in the restaurant industry. More and more food entrepreneurs are turning to cloud kitchens to reduce their operation costs and capture the explosive growth of food delivery.
Cloud Eats, a Manila-headquartered startup that operates cloud kitchens across the Philippines and Vietnam, has raised a $7 million Series A round led by Nordstar to accelerate the digitization of food service in Southeast Asia.
Following a successful launch in Vietnam earlier this year, the startup plans to further penetrate Southeast Asian countries such as Thailand, Malaysia and Indonesia in 2023, co-founder and CEO Kimberly Yao said in an interview.
“The huge growth of our Vietnam business in the last two quarters is extremely encouraging,” Yao said. “We are taking key lessons as well as best practices for our next market launch.”
The cloud kitchen market in Asia is expected to grow by 14.2% annually from 2021 to 2027; The food delivery market in Southeast Asia is expected to grow from $15.2 billion in 2021 to $49.7 billion by 2030.
The startup has seven Cloud Kitchen locations in the Philippines when it raises its Series A in October 2021; It works now 25 ghost kitchens across the Philippines and Vietnam, Yao told Technology Flow. According to Yao, its revenue increased 4 times from October last year to April this year.
The latest funding will also enable CloudEats to develop its brands, grow its team and double its investment in shared kitchen technology.
CloudEats co-founder Iacopo Rovere said the company’s main focus in the next 12 months is to develop a comprehensive suite of SaaS solutions for food service and strengthen brand building and marketing efforts. It has now There are over 30 brands in the Philippines and over 20 brands in Vietnam.Burger Beast is expanding its portfolio, including 24/7 Eats, Sulit Chicken, Pia’s Kitchen and Healthy Appetite.
CloudEats has a hybrid cloud kitchen and cloud restaurant model where the company is not only the infrastructure operator but also the owner of digital local brands.
“Today, we own and operate over 50 online optimized restaurant brands that we exclusively create and manage throughout the Philippines and Vietnam,” Yao told Technology Flow. “Our proprietary smart kitchen technology Integrating with food delivery platforms allows us to scale and grow the business quickly.
Yao, a serial entrepreneur with over ten years of experience in retail R&D and on-demand e-commerce, co-founded Cloud Eats in 2019 with Iacopo Rovere, former CEO of Foodpanda, who has an extensive background in food delivery service in Berlin. India. Cloud Eats says it has delivered more than 2.5 million orders.
In addition to its previous round of $5 million, the latest round of capital brings its total funding to $14 million.
“As a global investor in the cloud kitchen space, we are capturing the white space of the Southeast Asian food delivery market with our investment in CloudEats,” said Kimberly Ong, principal of Nordstar. “CloudEats generates the best brand and kitchen-level economics we’ve seen in the market, and that’s not only because of the company’s advanced technology and operational backbone, but also because of the team’s unique data and partnership-based approach to brand building.”