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Cloud kitchen startup CloudEats raises US$7M to expand to more SEA markets, develop its brands

Manila-headquartered CloudEats, which operates cloud kitchens across the Philippines and Vietnam, announced today it has raised US$7 million in a fresh funding round led by London-based VC firm Nordstar.

The ghost kitchen startup will use the new funds for regional expansion and the development of its brands Burger Beast, 24/7 Eats, and Sulit Chicken.

Resources will also be allocated to developing stronger content and expanding marketing efforts for CloudEats’s celebrity brands, such as Pia’s Kitchen with Pia Wurtzbach and Healthy Appetite with Rhian Ramos.

CloudEats is also doubling down on its smart kitchen technology, expanding its development team’s capabilities and onboarding crucial talent in brand and marketing.

CloudEats has become a major player in the region with its portfolio of persona-driven, innovative cloud restaurants and technology-powered cloud kitchens. It claims to have served over 2.5 million orders so far.

On the back of its successful Vietnam launch, the company is looking to open a third market in H1 2023.

Also Read: CloudEats raises US$5M in Series A for SEA expansion

“The massive growth of our Vietnam business over the last two quarters is highly encouraging. We are taking the best practices and key learnings to our next market launch,” said CloudEats Co-Founder Kimberly Yao.

His Co-Founder Iacopo Rovere said the firm has identified key focus areas in the next twelve months. They include a suite of integrated SaaS solutions for food service as well as intensifying brand building and marketing efforts for its hero and celebrity brands in the form of deeper partnerships with the food delivery platforms, creative offline executions, advanced product innovation, and exploration of new channels.

“As a global investor in the cloud kitchen space, we are capturing the white space in Southeast Asia’s food delivery market through our investment in CloudEats,” said Kimberley Ong, principal at Nordstar. “CloudEats generates the best brand and kitchen-level economics in the market. This is all due to the company’s sophisticated technology and operations backbone and the team’s unique data and partnership-driven approach to brand building.”

The firm has raised US$14 million since launching. In November last year, it announced a US$5 million Series A round led by Vulpes Investment Management of Singapore and Gobi Partners.

The US$15-billion food delivery market continues to explode in Southeast Asia and is expected to reach US$50 billion by 2030, according to a recent report by Frost & Sullivan. Euromonitor also projects the industry to be a US$1-trillion global opportunity by 2030.

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