Food delivery disruptor Kbox Global closes £12M from Balderton Capital to fuel continued expansion
Kbox Global has announced it has raised £12m led by Balderton Capital, to continue its mission to revolutionise the food delivery market through its unique host kitchen technology.
The Kbox model revisits the traditional economics of food delivery by utilising capacity in existing commercial kitchens. Kbox’s technology and menu portfolio mean kitchen owners, from pubs, hotels and restaurants to supermarkets, can establish an agile new revenue stream, that reflects the demographics and taste trends of their area, within days, for no upfront fee, and no additional investment in bricks and mortar.
The company has seen exponential growth in the last quarter since it secured seed funding of £5m from Hoxton Ventures earlier this year. With kitchens in London, Manchester, Liverpool, Glasgow, Edinburgh, and Brighton, Kbox is on course for 2000 operational kitchens in the UK before the end of 2021. An international rollout of the model is also underway with franchise agreements in Australia and India already signed and launching this month with a further 8 countries to be launched next year.
The food delivery market has grown 40% in five years in the UK and shows no sign of slowing down in the wake of the pandemic.
The Balderton investment will be used to accelerate Kbox’s UK growth plans as well as support planned international expansion and the establishment of a US base early next year. Salima Vellani, Kbox founder and serial restaurateur, armed with a track record of expanding concepts across international markets and having foreseen the rise of the delivery-first era, is now seizing on it for the benefit of the whole hospitality ecosystem.
Salima Vellani, Kbox founder and CEO, said:
“These are challenging times for anyone working in hospitality and income diversification is a powerful tool to boost revenues. I’m thrilled that venues from pubs, restaurants and hotels to casinos and supermarkets are embracing the delivery first era, by firing up their kitchens with Kbox.
“To have Balderton’s backing means we can respond to the global demand for a shakeup of the old economics, for the benefit of food providers, commercial kitchen owners and consumers.”
Daniel Waterhouse, Partner at Balderton Capital, added:
“Salima and the team have joined the dots between rapidly increasing consumer demand for delivery meals, ever-changing food preferences and under-utilised kitchen assets in a challenged hospitality sector. They have melded software and data science into a next-generation franchising model that can be deployed quickly to thousands of kitchens around the world. We are delighted to be joining them on this journey.”
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- Kbox uses existing spare commercial kitchen capacity, in restaurants, hotels, pubs, casinos, gyms, to prepare multiple delivery brands from the same venue. By lowering the investment barriers to food delivery expansion, powered by Kbox, kitchen owners can turbo charge their revenue, without upfront costs, additional spend on real estate, menu or customer research, or staff upskilling. The model is underpinned by a technology offering rich customer insight and up to the minute data to make the kitchen hyper responsive to local demand. Its unique black box solution entirely automates this process, allowing owners to benefit not just from their own kitchen, but through the powerful network effect of hundreds of host kitchens all sharing relevant brand performance data.
- Balderton Capital is a London-based venture firm focused exclusively on backing the best European-founded technology companies. In the two decades since its founding, it has worked with hundreds of extraordinary European founders and raised eight funds totalling more than $3bn.
- The COVID-19 pandemic has turbo-charged food delivery growth. Existing delivery users have been ordering more than ever before. Delivery visits have grown by over 40% in the past 5 years in the UK; the global online food delivery market is predicted to be worth USD 1 trillion by 2035. The more appetite there is for food delivery, the bigger the challenge traditional food outlets face in getting customers back into their restaurants.