Kitchen Center is a Delhi based Cloud Kitchen Startup, has recently come into news after it has raised an undisclosed amount of funding in a Pre Series A round from early-stage enterprise capital firms Village Global which in turn is backed by famous investors like Mark Zuckerberg, Bill Gates, Jeff Bezos, and Eric Schmidt.
The funds raised in this round will be implemented for increasing operations and taking a dive into newer markets in the whole country. Kitchen Centre is currently running successfully in over 35 ready-to-move-in kitchens in a span of 15 cities for food and FMCG brands.
Lakshay Jain founded the company in 2019. It is a shared kitchen startup that not only provides infrastructure and technology solutions but also provides services to online food and FMCG brands. The company has a ready-to-move-in kitchen approach. This move has been really smart and beneficial to the company and they have in return offered key benefits to brand partners with their fully fitted kitchens. The company had previously successfully raised $500,000 in a seed funding round from AngelList India.
“Kitchens Centre is providing a dedicated and sustainable solution for businesses to grow and produce a high order volume and sales. With the obvious benefit being the reduction of cost, we also aim to create an incubated ecosystem with integrated tech solutions, supply chain, logistics support and platform aggregation. Moreover with the Covid-19 pandemic still very much prevalent, the food delivery business is prospering and gaining momentum in the food services industry,” said Lakshay Jain.
The company had started operation with just two locations in Delhi and over the course of only one year, they have expanded to over 15 cities across India. The company has business with over 50 food and beverage brands like Choko La, Mamagoto, Nirula’s, Biryani Blues, Sleepy Owl, Cross Border Kitchen, The Masala Story of Punjabi by Nature, Fat Lulu’s, and Maalgaadi by Dhaba Estd 1986, among others.
The company has put forward an expansion plan of adding around 90+ new locations and 550 units in the span of another year. Currently, the startup is looking after 100,000 sq. ft space with only 50 team members.
“Kitchens Centre’s data-driven approach to property acquisition and sales management ensures maximisation of occupancy and unit economics. They consider various idiosyncratic factors such as cuisine share/gap, the composition of user cohorts and associated AOV etc to target a specific location within a city. India is one of the largest and fastest-growing F&B consumption markets and Kitchens Centre is rightly placed to address a market gap,” said Erik Torenberg, Co-founder, Village Global.
According to a report on cloud kitchens, the estimate that the market size of cloud kitchens would reach $1.05 billion bt merely 2023 in India alone. Recording a growth rate of more than 12%. The report also highlights that at present only 13% of the total market size has been used, this indicates a massive potential growth for this business.