Investments

Dubai’s Grubtech raises $3.4 million to grow its all-in-one cloud kitchen management platform

Grubtech, a Dubai-based SaaS startup for cloud kitchens and ‘delivery-centric restaurants’ has raised $3.4 million in a Pre-Series A round, it announced today. The investment came from large regional family offices, a US-based VC firm, and some angel investors, said the startup in a statement without disclosing further details about the investors. The bridge round follows a $2 million seed round that was announced just nine months ago.

Founded in 2019 by Mohamed Al Fayed and Mohamed Hamedi, Grubtech has built an operating system for restaurants that are focused on food delivery and cloud kitchens. Its suite of products is available as a package that comes with restaurant’s branded web ordering channel, food aggregator integrations (that allows them to receive and manage all orders from different food delivery apps in Grubtech), contactless dining app, centralized menu management (which means whenever they update their menu in Grubtech, it gets reflected in all the food delivery apps), third-party logistics integration, and real-time insights.

Mohamed Al Fayed, the co-founder and CEO of Grubtech, in a statement, said, “We are still in the early stages of the digitization of the F&B sector, akin to ecommerce 10 years ago. The operations of high volume, multi-brand, and omnichannel sales are complex, and so Grubtech has been built with a deep focus on our customers’ pain points today, and anticipated issues and opportunities of the future.”

“We are fortunate to be working with some of the largest and more innovative players in the sector who have provided us with a great customer feedback loop. We are proud to be local and privileged to be global,” added Mohammed who was previously the Senior Vice President of OmniChannel for Al Tayer Group.

In addition to food aggregators and third-party logistics services, Grubtech also has integrations for point-of-sale solutions and ERPs. “By centralizing capabilities, providing visibility into all critical events across the order lifecycle, and supplementing it with advanced analytics, Grubtech has helped its customers reduce click-to-doorbell time by 20% and save approximately 25% of manpower costs,” stated the startup in a statement.

The software is priced at $60 per month for every brand location. For the restaurant’s branded web ordering channel and dining app, Grubtech charges an additional $0.49 for every order.

Its solution is currently being used by large cloud kitchens and restaurant groups in the region and beyond. In a statement, Grubtech said that owners of underutilized real estate such as hotels and gas stations that have created their own cloud kitchens are also using its product. Grubtech’s solution can be used by the restaurant owners to create micro-cloud kitchens and serve multiple brands from one location. It helps them maximize their revenue from existing supply chains and resources.

Hilmar Venter, the Regional F&B Delivery Manager of the Azadea Group, one of Gurbtech’s clients, said, “Its user-friendly and intuitive interface meant that our staff required minimal training. The ability to centrally manage our menus and disable unavailable menu items and modifiers directly from the kitchen display system has helped reduce human errors, order cancellations, and eliminate time wasted making updates across various tablets. We’ve also significantly reduced order acceptance time by receiving all orders on one screen. By operating more efficiently, with cost savings, we are able to better serve our customers and increase repeat orders.”

The startup did not share a lot of details but said that it is serving hundreds of brands that have processed hundreds of thousands of orders using its solution. Grubtech said that it is seeing increased demand (of its solution) from different parts of the world including Europe and the Americas. It plans to use the latest funds to accelerate its product development to be able to capitalize on the interest.

A private group of syndicate investors led by Ghassan Oueida and Gry Loseth that invested in the startup, said, “Grubtech has built a pioneering tech stack which is trailblazing advancements in the growing online food delivery and cloud kitchen space. We are incredibly excited about Grubtech’s growth potential globally.”

Zubair Naeem Paracha
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