dahmakan, Malaysia’s first YC-backed cloud kitchen startup, has raised and closed US$5M+ series-A round, bringing total funding to close to US$10m for their vertically integrated, delivery-only food business which is present in Malaysia and Thailand.
“The Series A round was closed earlier this year, however only upon the successful launch of our distribution ‘satellite’ kitchens in Malaysia, have we decided to announce this,” said Jonathan, CEO & Co-founder of dahmakan.
According to Google Temasek report, demand for food delivery has grown rapidly at over 73% YoY in Southeast Asia. dahmakan capitalises on this demand for delivery-only food by servicing multiple satellite kitchens around Kuala Lumpur.
The investment comes from existing and new global investors including billion-dollar Silicon Valley fund Partech Partners, China’s UpHonest Capital, and follow-on from Y-Combinator, Atami Capital and private investment from the former CEO of Nestle.
Nicolas El Baze, General Partner at Partech Partners says: “We have looked at different companies in the space in Silicon Valley, Europe and Asia. dahmakan clearly stood out due to its unique operating system that orchestrates all parts of the value chain. The company has reached a crucial inflection point as the system is now ready to expand rapidly into other markets in Asia.”
“In the last few years, we have developed an operating system that drastically reduces the traditionally high cost structure of food delivery. The technology allows us to deliver better quality food at more affordable prices compared to other on-demand food delivery startups, while maintaining a higher profit contribution margin” said Jonathan. “This new funding round will allow us to drive growth in existing and new markets, including launching new distribution channels such as partnering with food delivery marketplaces and retailers, as well as expanding our own delivery coverage.”
Besides further regional expansion, dahmakan aims to bring in more talent into the leadership team to join the ranks of ex-UberEats, Hellofresh, Amazon and Boston Consulting Group alumni.
Founded in 2015 by ex-Foodpanda executives, Rocket Internet’s food delivery marketplace which was acquired by Delivery Hero in 2016, dahmakan started with the mission to cut out the middleman from food delivery and pass the value back to customers. By vertically integrating the entire value chain from food production to delivery, dahmakan aims to make food delivery an affordable experience for millions of office workers in SouthEast Asia every day.
dahmakan uses disruptive technology to take the traditional food & beverage industry to the next level. “We apply predictive analytics including machine learning to forecast sales and in food product development. Our proprietary routing algorithms and AI-powered operating system automates 80% of workflow, in both the food production and delivery, solving essentially, an on-demand food manufacturing problem,” said Jonathan.
“At UpHonest, we have witnessed the explosive growth of the Chinese food delivery market. Southeast Asia is forecasted to grow almost twice as fast in the coming 5 years and dahmakan has already positioned itself today as Southeast Asia’s champion. We are excited to support the team with our learnings from the Chinese market” said Wei Guo, Founding Partner at UpHonest Capital.
In 2018, dahmakan launched a new brand of lower-priced dishes, 30% more affordable than their initial starting price point in 2016. This brand has proven popular and has been adopted quickly by over 200 corporate partners in Kuala Lumpur as part of dahmakan’s digital canteen programme, a corporate food delivery offering which is set to launch in 1,800 offices across Klang Valley in 2019.
posted as received from Impact Communications