Dubai-based office lunch delivery startup ‘Lunch:on’ has raised another $2.5 million to close its Series A with $5.5 million, the startup announced today. Lunch:on had announced $3 million as first closing of its Series A just two months ago.
The round was led by Dubai-based Wamda Capital & Global Ventures with ten other investors joining in. B&Y Ventures, Derayah Capital, Mindhsift Capital, Shorooq Investments and Vision Ventures joined this second closing, and EATventure, Arzan VC, Abu Nayyan Holding, Dubai Angel Investors and AlJammaz Group, had participated in the first closing of the round.
It is not very common to see more than 10 institutional investors joining Series A of a startup in the region. In Lunch:on’s case this number is 12, with investors from UAE, Saudi, Kuwait, and Lebanon joining in.
Founded in 2016 by Mohammad Al Zaben and Dana Baki, Lunch:on delivers breakfast and lunch to office buildings and also offers corporate catering solutions. The two had created the startup out of their passion for food and mutual frustration over ordering food at work.
Mohammad Al Zaben, in a statement, says, “We identified a gap in the market as it relates to affordable lunch options for working professionals. Lunch:on offers a simple solution that saves customers both time and money while also benefiting our restaurant partners.”
The startup partners with restaurants to offer corporates and their employees curated meals, delivered to the office, at discounted prices. With its pro subscriptions, the customer can get their daily lunch for a fixed price of AED 25. Employees in each office receive a curated menu from 3 different restaurants daily, based on the preferences and ordering patterns of the customers in that office. They then simply need to place their order by 11:30 am and a delicious lunch of their choice is delivered to their office for AED 25 with free delivery.
Lunch:on claims to have over 200 restaurants as its partners, delivering lunch to over 500 companies in UAE.
Dana Baki. the co-founder of Lunch:on, says, “Our new catering platform gives office admins a simple way to get catered food, from over 200 restaurants, for their internal meetings and events. Companies are now able to order platters, plan food for any kind of event or order the traditional LUNCH:ON boxed meals for their teams, with just a few clicks. This part of the business has taken off quite nicely, as we have learned that corporate catering is a huge pain point for those involved, that no other regional players are addressing adequately.”
Noor Sweid, General Partner at Global Ventures, said, “Lunch:on’s unique model and platform is improving the lunchtime experience for companies, restaurants, and employees. Their ability to execute quickly and secure such a high-quality customer base within a short period of time gives us full confidence in their expansion into new cities globally. We are thrilled to partner with the Lunch:on team as they continue to grow in this exciting space.”
The startup will use the investment to expand its presence in UAE and launch in Saudi and further develop its technology.