The introduction of food technology in Kenya, Kune Foods, is preparing to suspend its operations in the Kenyan market. This comes about 4 months after the official start of commercial activities. The launch stalled after the investor withdrew, according to their CEO during a company meeting earlier today.
“As you know, we had to receive an investment of about Ksh 30 million from a French investor. “Yesterday I learned from this investor that he will not invest this money, why on the one hand because we are already short of money, it does not encourage them,” he said.
Just a few weeks ago, Kune Foods was making headlines due to its sudden change in operating style. Kune Foods left the app and its website accessible through submission programs only. This is Glovo, Jumia Foods, Uber Eats, and Bolt Food. The reason was not clear, as their original goal was to confuse the same players.
Last year, Kune Foods announced $ 1 million in funding for original seeds, which were used to expand its plant capacity and strengthen delivery strategies. In February this year, they said they were looking for an additional $ 3.5 million to increase their production capacity.
At its peak, Kune was delivering more than 400 meals a day, with an estimated delivery of more than 1,000 meals in the near future. It seems that their recent changes in operating structure were not so much motivated by the best strategy, but by the upcoming catastrophe. Now, insolvency is the final end of the journey.
“We do not sell enough food every day … We are still a cheap commodity so we could not find a buyer. What I was trying to do was not to lose your job and prevent other investors from losing their money. Money and the CEO of Kune told his employees.