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"We Got Funded!" Abu Dhabi-Based Foodtech Startup The Cloud Secures US$12 Million In A Series B Round Homegrown UAE-based food tech startup The Cloud has raised new funds to make significant inroads on the global stage.

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The Cloud

The Cloud, a foodtech startup incubated by the Abu Dhabi-based tech ecosystem, Hub71, has raised US$12 million out of a planned $30 million Series B funding round. The new funds will be used for international expansion, enhancing operational capabilities, and further development of its proprietary technology platform.

Founded by Georges Karam, The Cloud is on a mission is to empower underutilized kitchens to earn revenue, increase their geographical reach, and enter the high-in-demand food delivery space. Its Series B round saw participation from Dubai-based boutique early stage investment firm MENA Moonshots, among other investors, and it brings The Cloud's total funds raised to $22 million. It had previously raised $10 million in the Series A funding from Middle East Venture Partners, Rua Growth Fund, and Elekron Ventures.

"Having raised a total of $22 million, we are now focused on enhancing our market presence in the UAE and beyond," Karam says. "Our in-house developed technology and proactive acquisition strategy reflect our vision for industry consolidation, and our commitment to scaling strong homegrown brands internationally. Looking forward, we continue to actively eye more strategic acquisitions while also seeking to raise further capital."

Georges Karam, founder of The Cloud. Source: The Cloud

The Series B funding is a mix of equity and debt, as it also includes debt financing that The Cloud received from London-headquartered investment boutique agency Aluna Partners. "We have opted to blend debt with equity to facilitate acquisitions, a strategy that allows for self-financing and minimizes shareholder dilution," Karam explains. "Debt enables founders to avoid dilution and maintain a larger equity stake. It can extend the runway and potentially lead to a higher valuation. Additionally, debt can facilitate financing for acquisitions. However, Karam also shares a word of caution for entrepreneurs considering debt financing. "Depending on the terms of venture debt, interest rates can be high," he says. "Repayment of principal can be risky, particularly if the company is not yet profitable."

Commenting on the investment, Stefano Sciacca, Managing Director at Aluna Partners, says, "The online food delivery market is a mega trend that is here to stay. Having looked at many food tech business models, we believe The Cloud is emerging as a global market leader, and we are excited to support such a fast-growing venture."

The Cloud already has a presence in seven countries and 91 cities. Its ambition is to reach 8,000 locations by the end of 2027, and make a dual listing in Abu Dhabi and Riyadh. The Cloud had earlier made a strategic acquisition of the UK-based food tech startup KBOX, which expanded its footprint by 200 locations in the UK. This move underlines the company's commitment to driving innovation and asserting leadership in the foodtech sector, setting the stage for expansion across the UK and other GCC and European markets, such as Saudi Arabia, Lithuania, Belgium, and Netherlands.

Related: Startup Spotlight: UAE-Based Oscar Is Helping Businesses Attain Supply Chain Sustainability In Their Journeys Towards Net-Zero

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