CloudKitchens, the US-based ghost kitchen company backed by Saudi Arabia’s Public Investment Fund (PIF), has reportedly put its plans for a public listing of its Middle Eastern business on hold. The firm, led by former Uber CEO and co-founder Travis Kalanick, is now exploring a private placement as an alternative.
Shift in Strategy
The decision marks a significant shift from the company’s earlier ambitions to go public in the region. According to a Bloomberg report citing anonymous sources, while the initial public offering is currently shelved, the plans could potentially be revived in the future.
Ambitious Listing Plans
CloudKitchens had been preparing for a dual listing in both Abu Dhabi and Saudi Arabia, with a target timeline as early as 2026. The company was aiming for a substantial $2 billion valuation through the public offering.
Operating in the MENA region under the brand name KitchenPark, the company has established a presence in the UAE, Bahrain, Saudi Arabia, and Kuwait.
PIF’s Major Backing
The venture’s regional expansion and high-profile listing plans have been significantly bolstered by Saudi Arabia’s Public Investment Fund. In 2019, the sovereign wealth fund made a major commitment to the company with a $400 million investment, underscoring the region’s strategic interest in the rapidly growing food technology sector.
About CloudKitchens
CloudKitchens provides turnkey commercial kitchen spaces designed for restaurant businesses that focus exclusively on delivery and pick-up services, commonly known as ‘ghost kitchens’. The company’s model includes not only the physical infrastructure but also maintenance, logistics support, and proprietary software to help clients efficiently manage online orders from various delivery platforms.
Source: AGBI
