Oman cloud startup raises $2.8mln in seed funding

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MUSCAT, SEPT 11 - Oman-based cloud kitchen startup IO Kitchens announced that it has raised $2.8 million in seed funding, led by Tanmia Small-Cap Fund.

In a statement, Hisham Hasan, CEO and Founder of IO Kitchens, shared how the funding will help expand the brand. “We are deeply appreciative of the trust our investors have placed in us. This capital infusion will enable us to scale our operations, enhance our proprietary technology platform, and expand our culinary portfolio, all while continuing to forge strategic partnerships that will propel IO Kitchens to new heights. Our ultimate goal is to transform the food delivery experience in Oman and beyond in a way that resonates with today’s tech-savvy consumers,” he said.

The funding, led by Tanmia Small-Cap Fund, was supported by a diverse group of family offices and regional investors.

Khalid al Balushi, CEO of Tanmia, stated, “We are thrilled to close our first investment in our Tanmia Small-Cap Fund and support IO Kitchens’ ambitious vision. Their innovative approach to the cloud kitchen model is poised to make a significant impact on the food delivery sector, not just in Oman, but across the region. We believe IO Kitchens is on the cusp of reshaping how food is delivered and enjoyed.” Established in 2021, the cloud kitchen enterprise currently operates in three locations in Oman, harbouring a portfolio of over 30 F&B brands, in addition to managing its own brands.

According to the global management consulting firm IMARC Group, the global cloud kitchen market was valued at $71.1 billion in 2023 and is expected to grow at a CAGR of 9.86 per cent from 2024 to 2032, reaching $170.0 billion by 2032. In the Middle East and North Africa (MENA) region, the cloud kitchen market is projected to reach a value of over $10 billion by 2029.