Matbakhi raises USD 2.3 million in pre-Seed round

Matbakhi, a Saudi foodtech startup, raises USD 2.3 million. Matbakhi aims to support F&B brands in creating chef-driven food concepts.

Matbakhi, a Saudi-based foodtech startup, has raised USD 2.3 million in a pre-Seed round led by Bugshan Investment Company and undisclosed angel investors. Matbakhi was founded in 2022 by Joe Frem and Rodolph Njeim. The company runs a number of cloud kitchens in five locations across Riyadh and seeks to help F&B companies to create chef-driven food concepts in order to “democratize access to carefully curated F&B concepts”.

Matbakhi: Introducing the “Hotel Cloud Kitchen model”

The new funds will be used to introduce the company’s “Hotel Cloud Kitchen model” designed to expand its offerings to hotels. Matbakhi also plans to accelerate its expansion in Riyadh and Saudi’s Eastern Region in order to increase its number of clients.

The Saudi hospitality industry is on the rise. As part of Vision 2030, the Kingdom aims to welcome 100 million visitors by 2030. With the relaxation of visa requirements, travel to the country has been rising steadily, according to a report by Mordor Intelligence. However, the industry still faces challenges that impact profitability, services and offerings. By acting as the F&B supplier to a hotel, Matbakhi aims to improve its menus, its customer experience, and profitability. 

Hyperlocal and ultra asset-light

“With many cloud kitchen models out there, it was super important to identify the model we wanted to adopt to ensure we build a financially sustainable company”, said Joe Frem, CEO and Co-founder of Matbakhi. “The Hotel Cloud Kitchen Model we adopted is ultra asset-light, which allows us to scale fast and reduce challenges like labor and licensing to launch operations in every location while solving a major problem for the hotels. Our focus on hyperlocal brand creation will help us position Matbakhi as a locally-inspired catalyst of different cuisines.”

Plans for the future

As of January 2023, Matbakhi operates in five locations in Riyadh and works with four brands. The company plans to start operations in the Eastern Region by the end of this year and to grow its portfolio to 20 brands. The management team will attempt to grow the Hotel Cloud Kitchen Model in Saudi while demonstrating how it can help brands to grow.

The company aims to become profitable by Q1 2024, by focusing on growth in Riyadh and the Eastern region during 2023. 

Read our exclusive interview with co-founder and CEO of GrubTech, Mohamed Al Fayed. GrubTech offers a series of cloud kitchens and a range of solutions and technologies to smooth out operations and reduce inefficiencies across an order cycle.