CloudKitchens eyes Mideast IPO as food delivery sector heats up
The Saudi PIF-backed ghost kitchen startup run by former Uber CEO Travis Kalanick is considering an IPO of its Middle East unit.
CloudKitchens has hired Goldman Sachs to work on the deal, which would involve a listing in the UAE, Saudi Arabia, or both, Bloomberg reports.
The PIF, which invested $3.5 billion in Uber under Kalanick, pumped $400 million into his new kitchen venture in 2019, helping fund its rapid global expansion.
Ghost kitchens are the unseen commercial cooking operations that largely fuel the food delivery business, using cheaper real estate in industrial areas to keep costs down for restaurant businesses.
CloudKitchen’s Middle East operations include KitchenPark, which operates facilities in Saudi Arabia, the UAE and Kuwait.
Meanwhile, Uber subsidiary Careem has branched out in an unlikely direction, offering to deliver certified 24-carat gold coins to Dubai residents in less than an hour.
U.K.’s Zapp to launch in Dubai’s crowded food delivery market
Zapp, a British grocery delivery startup, plans to launch in Dubai this year, entering an already crowded and competitive Middle Eastern market.
The company, which launched during the pandemic, saw valuations drop as workers returned to office and inflation hit delivery spending.
“We are always looking for opportunities to grow our business and are considering launching in the region as early as this year,” a Zapp spokesperson said in a statement to Bloomberg.
Zapp says it’s rebounding by focusing on high-end goods, generating over $100 million in U.K. sales in 2024 through partnerships with brands like LVMH and Fortnum & Mason, the news agency said.
Zapp’s entrance to the market is the latest of series in a highly competitive market for delivery companies. Keeta, the international arm of China’s Meituan, has captured 10% of Saudi Arabia’s food delivery market just four months after launch.
Talabat, the Middle East branch of Germany’s Delivery Hero, raised $2 billion in December through an IPO on the Dubai Financial Market. The company acquired full control of Instashop from Delivery Hero two weeks ago for $32 million.
Asfar expands Saudi tourism with hotel and entertainment projects
Saudi tourism startup Asfar is launching hotel and entertainment projects in Tier 2 cities to support the kingdom’s goal of becoming a top global destination.
Backed by Saudi Arabia’s Public Investment Fund, Asfar aims to extend tourist stays beyond major cities, CEO Fahad Bin Mushayt told Bloomberg.
The company’s first developments in Al Bahah and Yanbu are set to open by year-end, adding 2,000 hotel keys.
Bin Mushayt said that each of Asfar’s projects cost anywhere from $40 million to $107 million, with at least 30% of funding coming from the private sector.
Mubadala-backed Getir votes on new board to resolve deadlock
Turkish grocery delivery startup Getir, which counts Mubadala as its largest shareholder, plans to address a management dispute that has been blocking a funding lifeline from existing investors.
Abu Dhabi sovereign wealth fund Mubadala demanded in April that additional cash be conditional upon changes to the board and senior management.
Getir CEO Nazim Salur agreed this week to convene an annual general assembly and vote on a new board, as the two sides work to move past the feud, Bloomberg reports.
Salur founded the company in 2015, operating at its peak over 1,100 so-called “dark stores” which worked as fulfillment centers in high-density neighborhoods.
Getir raised $768 million in a Series E round at a valuation of $11.8 billion in March 2022 amid a flood of investment into the delivery space during the Covid-19 pandemic.
The cash infusion spurred the company to continue its aggressive expansion into Europe and the U.S. which it has since unwound, now focusing on its home market of Turkey.
It was most recently valued at $2.5 billion as of September. Other investors include Sequoia and Tiger Global, as well as the Abu Dhabi Growth Fund and Alpha Wave Global.
