CloudEats Raises P410 Million in Series A Extension Round, Sets Its Sights on Regional Expansion

This Philippine startup is focusing on all of Southeast Asia.
IMAGE MAGIC LIWANAG

Filipino startup CloudEats is going international as it sets its sights on Southeast Asian expansion. The startup recently raised $7 million (P410 million) from its Series A extension round that was led by London-based VC Nordstar, which previously backed cloud kitchens Curefoods in India and Kitopi in the Middle East and North Africa. 

The Series A round raises CloudEats’ total funding to $14 million (P821 million). CloudEats, which is positioning itself as a regional cloud kitchen, currently operates in the Philippines and Vietnam and has serviced 2.5 million orders since its founding in 2019. With its fresh infusion of $7 million, the startup is eyeing the opening of its third market in the first half of 2023.

“The massive growth of our Vietnam business over the last two quarters is highly encouraging. We are taking the best practices along with key learnings to our next market launch,” says CloudEats cofounder Kimberly Yao.

Aside from regional expansion, the startup will be using its funds to further develop its original F&B brands—Burger Beast, 24/7 Its, and Sulit Kitchen—as well as expanding the marketing of its celebrity food brands—such as Pia Wurtzbach’s Pia’s Kitchen and Rhian Ramos’ Healthy Appetite. The startup’s celebrity brand portfolio boasts 60 million followers on social media as of posting. Funding will also be utilized toward smart kitchen technology, development team expansion, and marketing team expansion. 

“We’ve identified key focus areas in the next twelve months that would include a suite of integrated SaaS solutions for food service as well as intensifying brand building and marketing efforts for our hero and celebrity brands in the form of deeper partnerships with the food delivery platforms, creative offline executions, advanced product innovation, and exploration of new channels,” says CloudEats cofounder Iacopo Rovere.

ADVERTISEMENT - CONTINUE READING BELOW

Founded in 2019 by Rovere and Yao, the startup’s executives and board members have extensive experience in companies like Foodpanda, Lazada, Tomato, and Alibaba.

“As a global investor in the cloud kitchen space, we are capturing the white space in Southeast Asia's food delivery market through our investment in CloudEats. CloudEats generates the best brand and kitchen-level economics that we have seen in the market, and this is all due to not only the company's sophisticated technology and operations backbone, but also the team's unique data and partnership-driven approach to brand building. Through the company's recent expansion to Vietnam, we are already seeing proof points that the successful playbook that the team has built in its home market, the Philippines, is replicable to other markets in the region," says Kimberley Ong, Principal at Nordstar.

The food delivery market in Southeast Asia is currently worth $13 billion, but could grow to $50 billion by 2030, according to Frost & Sullivan. The cloud kitchen industry could be even more lucrative, with a projected worth of $1 trillion in global opportunity by 2030, according to Euromonitor.

ADVERTISEMENT - CONTINUE READING BELOW
Recommended Videos

Discover the best of culture, business, and style from Esquire Philippines. Visit Quento for more stories and subscribe to our YouTube channel for new videos. 

View More Articles About:
More Videos You Can Watch
About The Author
Anri Ichimura
Section Editor, Esquire Philippines
View Other Articles From Anri
Latest Feed
Load More Articles
Connect With Us