Exclusive – Kbox Global acquired by UAE-based virtual brand operator The Cloud: Abu Dhabi-based virtual brand operator The Cloud is set for expansion in the UK, after acquiring Kbox Global, the host kitchen business, out of administration, Propel has learned. The acquisition comes as The Cloud has closed a $12m Series B funding round out of a total $30m it is raising. Having initially raised $10m in Series A funding, this round brings The Cloud’s total funds raised to $22m. It said that this milestone, coupled with debt financing from Aluna Partners, and the strategic acquisition of Kbox, marks a “significant stride for The Cloud”, which was founded by Georges Karam, towards “redefining the virtual dining landscape in the GCC and Europe”. The company said that the acquisition of Kbox strategically expands its global footprint by 200 locations in the UK. It said: “This move underlines the company’s commitment to driving innovation and asserting leadership in the food tech sector, setting the stage for rapid expansion across the UK and other strategic European markets such as Lithuania, Belgium, and Netherlands, which highlights the company’s capacity to attract strategic partners like MENA Moonshots. The investments extend beyond capital, providing invaluable expertise and access to networks as The Cloud ambitiously eyes new markets and innovative dining solutions.” Karam, founder and chairman of The Cloud, said: “Supported by Hub71, our Series B funding and the acquisition of Kbox cement our role as disruptors in the global food tech sector. With a cumulative $22m raised to date, we’re not only eyeing new markets but are set on increasing our market share in existing territories. Our in-house developed technology and strategy for further acquisitions underscore our belief in the industry’s 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.” Stefano Sciacca, managing director at Aluna Partners, said: “The online food delivery market is a mega trend that is here to stay. We believe that The Cloud will gain significant market share in the UK market through the acquisition of Kbox. Having looked at many food tech business models, we believe The Cloud is emerging as a global market leader and are excited to support such a fast-growing venture.” The company said the additional capital from the Series B funding will be instrumental in accelerating growth, with a significant portion earmarked for international expansion, enhancing operational capabilities, and further developing The Cloud’s proprietary technology platform. With a presence in seven countries and 91 cities, and ambitions to reach 8,000 locations by the end of 2027, The Cloud said it is on track for a dual listing in Abu Dhabi and Riyadh. Propel revealed last October, that Kbox Global had net liabilities of £15.7m and cash at bank and in hand of £200,000 when it was placed into administration. Founded in 2015, Kbox was a brands and performance food tech business. The company operated via a cloud kitchen, or “dark kitchen” model, utilising spare kitchen capacity in restaurants, hotels and pubs, and licensing a suite of delivery-only brands to its client base. The company also provided a one-stop solution platform for training and performance management. Nick Holloway and Will Wright, of Interpath Advisory, were appointed joint administrators of Kbox Global on 11 October 2023.