Dubai-based cloud kitchen company iKcon plans to raise more money to expand its operations across the Middle East as demand for online food delivery in the region continues to grow.
The company, founded in 2019 by Khalid Baareh and Kareem Abughazaleh, recently secured $5 million (Dh18.36m) in pre-Series A funding from Kuwait’s Arzan Venture Capital, family-owned Saudi companies Al Touq Group and Nazer Group, and others.
“We are preparing for our Series A funding round, which we target to conclude by December of this year,” chief executive Mr Baareh says.
He did not disclose how much iKcon intends to raise. The company has appointed Lumina Capital Advisers to advise on the fundraising.
“This will support our growth plans by allowing us to continue our UAE expansion plan, scale [up] our Saudi Arabia operations, hire the best talent across all disciplines and functions and, most importantly, continue investing heavily in our proprietary technological capabilities and solutions.”
The company was initially funded by a small group of friends before a seed round was raised last year, followed by the recent pre-Series A funding. It has secured more than $10m so far from investors across the GCC.
Cloud kitchens, or ghost kitchens, are commercial establishments that produce food specifically for delivery.
They do not have dine-in areas and consist of shared kitchen spaces with culinary specialists preparing food that is then delivered to customers at home or at work, typically through online delivery platforms such as Zomato, Deliveroo, Talabat, Uber Eats and others.
The concept has been gaining traction. Uber founder Travis Kalanick acquired US-based CloudKitchens in 2018 and has been buying competitors such as Foodstars, which is based in London, to grow the business.
“Covid-19 has re-emphasised the importance of food delivery and the convenience that it brings to businesses and consumers. Moreover, existing restaurant groups are seeing decreased dine-in demand because of Covid[-19] and higher dependency on delivery,” Mr Baareh says.
The company has 10 cloud kitchens in different locations in Dubai and Abu Dhabi, and it plans to open new cloud kitchens in Sharjah.
“We generate revenue from the consumer food orders through [several] sales channels such as delivery apps, directly through our customer service call centre and online platforms such as Instagram,” Mr Baareh says.
“We are also consistently innovating into new categories and will be announcing some exciting partnerships soon that create entirely new revenue streams for us.”
The company is partnering with a number of restaurants in Dubai to cook food and deliver it to their customers.
He said the UAE was still an under-penetrated market with opportunities for all cloud kitchen operators to grow.
“We welcome the competition and want to see our markets grow.”
Global brands in the food industry such as Jollibee are also entering the cloud-kitchen space.
The Philippines-based company opened its first cloud kitchen in Singapore last month.
Start-ups in the Middle East and North Africa secured $659m in funding in the first half of this year, an increase of 35 per cent from the previous year, according to data platform Magnitt.
The UAE received the largest share of funds raised while Egypt was ranked first in terms of the number of deals, accounting for 25 per cent of the region’s total.
“We are keen to continue expanding within the region and are fortunate to have highly engaged shareholders across the GCC and surrounding countries ... there will be more expansion announcements other than Saudi Arabia soon,” Mr Baareh says.
He did not divulge which other markets the company intends to expand to but said iKcon's “focus is on the Middle East and we are keen to launch our operations in other countries in the region”.
Mr Baareh, who holds a master's degree in Business Administration from the London School of Business, decided to start the company along with Mr Abughazaleh after seeing “significant acceleration” in the adoption of technology that helps to deliver food to customers through online channels.
“In mid-2018, we realised that the time was right for us to map out our cloud-kitchen vision with technology being at the core of our strategy and execution.”
Mr Baareh’s background was in consulting and private equity, which included experience with companies in the food and beverage space.
Mr Abughazaleh’s experience is in food operations and production.
He has founded and invested in several successful food-related companies.
“We launched iKcon with a vision to become the market leader in cloud kitchens in the region and to introduce modern and tech-advanced services to the food and beverage landscape. We are optimistic about our future growth.”
The company has 400 employees and intends to employ about 600 by the end of this year as demand for cloud kitchens grows across the region.
Other cloud-kitchen companies in the region have also been successful in raising money to fuel growth. Dubai-based Kitopi raised $60m in a Series B round in February and said the funds would allow it to add 100 more locations around the world by the end of this year.
Founded by Mohamad Ballout, Saman Darkan, Bader Ataya and Andres Arenas, Kitopi has more than 1,200 employees and has partnered with more than 100 restaurants such as Operation Falafel, Pizza Express and Right Bite.
Company profile
Name: iKcon
Founders: Khalid Baareh and Kareem Abughazaleh
Based: Dubai
Founded: 2019
Number of employees: 400
Sector: Food technology
Funding: $10m, including a recently closed pre-series A round of $5m led by Arzan Venture Capital, AlTouq Group and Nazer Group
Future plans: Looking to raise fresh capital and expand in Saudi Arabia
Q&A with Khalid Baareh, co-founder and chief executive of iKcon
What successful start-ups do you wish you could have started?
There are a number of start-ups that have made a huge impact on our daily lives including Uber, Careem, Amazon, Airbnb and Alibaba. Amazon changed the e-commerce business and Uber and Careem completely transformed the travel and logistics business.
What is your vision for the company?
To become the regional leader in the cloud kitchen space. We are looking to redesign the kitchen operations and food production business in the region using our know-how and technology. There are tremendous opportunities in this field.
Who are your clients in the region? How was your concept developed?
Our clients are well-established restaurants, chains and food entrepreneurs – many having an international presence – with unique ideas and concepts, who are looking to extend their reach while maintaining the same level of quality and consistency.
What is your mantra for success?
I always go by mindset and a positive, right frame of mind will lead to success. I am glad to be surrounded by exceptionally talented people who are helping us to scale our operations and grow our business. I wake up every day and it is a blessing to be doing what I am doing.
Where do you see yourself and iKcon in five years?
My focus is purely on building the next regional unicorn and I can’t imagine doing anything else. The next five years are important, transformational years for the food and beverage industry and we at iKcon are aiming to become the regional leader in operating cloud kitchens. We are focused on technology and operational excellence, which will be essential as the consumer will have an abundance of brands to choose from and is increasingly relying on technology to save time across several facets of their life.
How do you envision a post-Covid 19 world?
Consumer behaviour was already evolving rapidly over the past couple of years. I am convinced that the new consumer behaviour is here to stay, and the new market dynamic will become the norm.
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Joy%20Ride%20
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MATCH INFO
Qalandars 112-4 (10 ovs)
Banton 53 no
Northern Warriors 46 all out (9 ovs)
Kumara 3-10, Garton 3-10, Jordan 2-2, Prasanna 2-7
Qalandars win by six wickets
The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
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Company%C2%A0profile
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LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Abandon
Sangeeta Bandyopadhyay
Translated by Arunava Sinha
Tilted Axis Press
The specs: 2018 Alfa Romeo Stelvio
Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km
Reputation
Taylor Swift
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Red flags
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How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
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'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Most match wins on clay
Guillermo Vilas - 659
Manuel Orantes - 501
Thomas Muster - 422
Rafael Nadal - 399 *
Jose Higueras - 378
Eddie Dibbs - 370
Ilie Nastase - 338
Carlos Moya - 337
Ivan Lendl - 329
Andres Gomez - 322
The%20specs%20
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The specs: 2018 Range Rover Velar R-Dynamic HSE
Price, base / as tested: Dh263,235 / Dh420,000
Engine: 3.0-litre supercharged V6
Power 375hp @ 6,500rpm
Torque: 450Nm @ 3,500rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 9.4L / 100kms
The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
Princeton
Sreesanth's India bowling career
Tests 27, Wickets 87, Average 37.59, Best 5-40
ODIs 53, Wickets 75, Average 33.44, Best 6-55
T20Is 10, Wickets 7, Average 41.14, Best 2-12
Ready Player One
Dir: Steven Spielberg
Starring: Tye Sheridan, Olivia Cooke, Ben Mendelsohn, Mark Rylance
RACECARD
6pm Emaar Dubai Sprint – Conditions (TB) $60,000 (Turf) 1,200m
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'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
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Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
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UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
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Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
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The%20new%20Turing%20Test
%3Cp%3EThe%20Coffee%20Test%3C%2Fp%3E%0A%3Cp%3E%3Cem%3EA%20machine%20is%20required%20to%20enter%20an%20average%20American%20home%20and%20figure%20out%20how%20to%20make%20coffee%3A%20find%20the%20coffee%20machine%2C%20find%20the%20coffee%2C%20add%20water%2C%20find%20a%20mug%20and%20brew%20the%20coffee%20by%20pushing%20the%20proper%20buttons.%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp%3EProposed%20by%20Steve%20Wozniak%2C%20Apple%20co-founder%3C%2Fp%3E%0A
Zayed%20Centre%20for%20Research
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
THE 12 BREAKAWAY CLUBS
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Education reform in Abu Dhabi
The emirate’s public education system has been in a constant state of change since the New School Model was launched in 2010 by the Abu Dhabi Education Council. The NSM, which is also known as the Abu Dhabi School Model, transformed the public school curriculum by introducing bilingual education starting with students from grades one to five. Under this new curriculum, the children spend half the day learning in Arabic and half in English – being taught maths, science and English language by mostly Western educated, native English speakers. The NSM curriculum also moved away from rote learning and required teachers to develop a “child-centered learning environment” that promoted critical thinking and independent learning. The NSM expanded by one grade each year and by the 2017-2018 academic year, it will have reached the high school level. Major reforms to the high school curriculum were announced in 2015. The two-stream curriculum, which allowed pupils to elect to follow a science or humanities course of study, was eliminated. In its place was a singular curriculum in which stem -- science, technology, engineering and maths – accounted for at least 50 per cent of all subjects. In 2016, Adec announced additional changes, including the introduction of two levels of maths and physics – advanced or general – to pupils in Grade 10, and a new core subject, career guidance, for grades 10 to 12; and a digital technology and innovation course for Grade 9. Next year, the focus will be on launching a new moral education subject to teach pupils from grades 1 to 9 character and morality, civic studies, cultural studies and the individual and the community.
UAE currency: the story behind the money in your pockets
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
The%20specs
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PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
Company profile
Name: GiftBag.ae
Based: Dubai
Founded: 2011
Number of employees: 4
Sector: E-commerce
Funding: Self-funded to date
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
