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Karma Kitchen raises $318 million for rentable kitchens - Business Insider

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Cloud kitchen startup Karma Kitchen raises $318 million for expansion as food delivery explodes during the pandemic

Now, investors are also pouring cash into the startups offering the necessary infrastructure for delivery-only food businesses.

"Instead of raising money down the line from a VC [venture capitalist] to invest in the capex [capital expenditure] and the fit-out of the sites, we chose to partner with a real estate group who specialize in industrial real estate acquisitions," said Eccie Newton. The current plan is to open more sites in the UK this year, in locations like Dublin and Glasgow as well as London, and from next year they hope to expand into the rest of Europe.Karma KitchenNow Karma is seeing even greater demand for its services as restaurants that were forced to shut their doors pivoted to food delivery.

Karma's main competition is a rival cloud kitchen startup run by former Uber CEO Travis Kalanick. His firm, City Storage Systems, acquired UK-based FoodStars in 2019 and also owns US-based CloudKitchens.

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