It is with sad hearts we report that Kune Food shuts down operations. Indeed, the startup ecosystem can be brutal and unforgiving to the survival of noble ideas.
The Kenyan food-tech startup, Kune Food which raised Pre-seed funding of 1 million dollars barely a year ago is shutting down. The startup officially began its commercial operations with four meal hubs. They operated across strategic locations in Nairobi. TechSteroid reporters have however learned that the startup will be unfortunately leaving the market today due to insolvency.
The company was founded by its CEO Robin Recht in December 2020. Kune delivered freshly made, ready-to-eat meals at competitively affordable prices. When the CEO first came to Kenya in November 2020, he perceived it wasn’t easy to get affordable ready-to-eat meals. On this reason, he started the company.
Why Kune Food Shuts Down Operations
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The founder Robin Reecht however stated today in a LinkedIn post that they will be shutting down operations due to the company’s inability to raise funds needed to keep operationg. He also blamed the event on the “economic downturn and tightening up of investment markets”.
The CEO mentioned that he even sought out buyers to buy the company but all seemed impossible.
In the words of the CEO;
”I looked for some companies to buy Kune. I spoke to the CEO of Java, ArtCaffe, Nas Servair, Bidco and several others, no company is interested to buy Kune. Why they are not interested? They think we built a very strong brand that is very recognised…but at the same time they think what we built is not strong enough to justify a purchase.” the CEO told employees.”
Kune Food CEO
The CEO did give out his words of apology to the investors on his LinkedIn page, and he is quoted to have said;
My second thought goes to our investors. Some of you joined the Kune journey when it was just me and a Chef, delivering food on foot to a nearby office. Some others joined later and helped us grow into a food tech startup with a tech platform, a factory, a kitchen studio, 7 distribution hubs, 6000 customers, and a team of 90 people. Not only did you invest in Kune but you gave us your time, brain width, connections, and emotional support. I am deeply sorry that Kune’s vision didn’t come true. To betray your confidence is something for which I will never forgive myself.
Kune Food CEO
He also said;
“Since the beginning of the year, we sold more than 55,000 meals and acquired more than 6,000 individual customers and 100 corporate customers. But at $3 per meal, it just wasn’t enough to sustain our growth… Coupled with rising food costs deteriorating our margins, we just couldn’t keep going,” the CEO wrote.
The CEO wrapped up his LinkedIn post by saying;
My third thought goes to suppliers, customers, bankers, and partners of any sort who supported us along our way. I’m sincerely sorry for the outcome. Many things could have been done differently, better certainly. The coming months will allow us to reflect on Kune’s failure, and I hope to share about it when the time will be right.
If you know anyone who could be interested to acquire Kune’s IP or Assets, please reach out by PM.
Sincerely yours,
Robin.
In a Nutshell
Several things could have been the cause of Kune failure. However, more will be known when the CEO takes enough time to reflect on what must have truly happened to the startup. We all await when he decides to share his story with the world. But until then we wish him good luck in his next endeavor.
If you are just, or about to launch a startup in Nigeria or Africa, take your time to read: Launching a Tech Startup in Nigeria: The Founder’s Guide
