MARCHASIA BUSINESS OUTLOOK8Kitopi, one of the most well-known names in the cloud kitchen space, has acquired Dubai-based F&B company AWJ, the company behind delivery and dine-in brands such as Operation Falafel, Catch 22, Awani, and Sushi Do. The latter opened its first store in Dubai in 2014 and has since expanded to more than ten brands and 32 stores in the UAE and Saudi Arabia. Every year, Operation Falafel serves over 2 million customers worldwide. AWJ also operates franchises in New York and London. It employs over 1,300 people. Cloud kitchen and virtual-only restaurant brands have had three record years of growth and the trend is set to continue as the concept expands in the core UAE and Saudi markets and starts seeing itself in others.Kitopi has raised a sizable funding corpus to fuel its expansion and deals. In March of last year, it announced a $415 million funding round in which Japanese investment behemoth Softbank participated. Kitopi now has over 100 brands in over 200 locations across five markets. The AWJ brands will 'eye expansion in new markets where Kitopi has a solidified presence and a vast network of locations' as part of the deal, the value of which has not been disclosed. Kitopi's SKOS (Smart Kitchen Operating System) platform will also be useful to AWJ. "The co-founders and leaders of AWJ have done a remarkable job in building its iconic brands and growing them across borders", said Mohamad Ballout, Co-Founder & CEO of Kitopi. "It is going to be a privilege to continue to innovate, elevate and expand its success". AWJ will have a new CEO but keep the same team and operate as a separate vertical from Kitopi's on-demand business. Kitopi, which was founded in Dubai in January 2018, has over 5000 employees and offices in Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain. It also has an engineering hub in Krakow, Poland, a global customer experience centre in Dubai, and an Odense, Denmark-based Robotics Hub. NEWSROOMKITOPI ACQUIRES DUBAI BASED AWJTHE AWJ BRANDS WILL 'EYE EXPANSION IN NEW MARKETS WHERE KITOPI HAS A SOLIDIFIED PRESENCE AND A VAST NETWORK OF LOCATIONS' AS PART OF THE DEAL, THE VALUE OF WHICH HAS NOT BEEN DISCLOSED
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