The Food Lab, An Egyptian Cloud Kitchen Provider, Raises $4.5M Pre-Seed For Expansion
04/19/22, 5:05 AM
Money raised
$4.5 million
Round Type
pre-seed
Per reports, Egyptians spend about 30% of their income on food in a $17 billion restaurant industry, one of the largest in Africa and the Middle East. Yet restaurants in this North African nation operate on thin margins due to several factors, ranging from large initial investments and high cost of rent to increasing operating expenses and commissions charged by aggregators.
Company Info
Additional Info
Following two years of bootstrapping, the company has raised $4.5 million in pre-seed financing — its first venture round. The company provides a full suite of end-to-end services, including cloud kitchen (kitchen as a service) and procurement. Although the food tech startup only opened another location last year, the founders said The Food Lab’s orders grew 10x, and revenues since inception have increased by 60x. More than 50 restaurants and food brands use The Food Lab, and 175,00 end customers have made orders from its kitchens, the company said. According to its founders, this pre-seed investment will allow the company to further expand in the country and lay the foundation for entry into the Middle East and sub-Saharan Africa.“First thing is to completely take over the Egyptian market, especially in Cairo or some key governorates that we want to have a strong footprint.