Kitopi, the UAE-based food and beverage technology ecosystem, has announced a $50 million debt financing round led by EvolutionX, a growth-stage debt financing platform established by Temasek and DBS Bank. The investment marks EvolutionX’s first entry into the Gulf region and signals a strategic capital shift for the F&B leader.
A Strategic Shift to Non-Dilutive Capital
This latest funding round highlights a deliberate move by Kitopi to embrace debt financing over a new equity round. This approach allows the company’s founders and major investors to maintain their ownership stakes without dilution, a decision supported by the company’s strong financial standing.
The move comes after Kitopi successfully achieved its profitability milestone, demonstrating stable cash flows after years of aggressive, venture-backed expansion with prominent investors like SoftBank. Choosing debt at this stage is a strong indicator of the business model’s maturity and its ability to generate returns without further structural concessions.
Fueling Regional Expansion and Franchising
The new capital will be instrumental in accelerating Kitopi’s expansion plans across its core markets in the UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait. The company plans to scale its portfolio of popular homegrown brands, which includes Operation Falafel, Catch-22, Awani, and Taqado.
Beyond strengthening its regional footprint of over 200 locations, the funds will also be used to advance the company’s international franchising strategy.
“As we continue to scale our loyalty app alongside our regional growth and international franchise expansion, this funding round positions us perfectly to capitalize on the growing demand for our brands,” said Mohamad Ballout, CEO and Co-Founder of Kitopi. “What began as a local presence has evolved into a regional platform, and we’re now taking that momentum global.”
EvolutionX Enters the Gulf
For lead investor EvolutionX, this partnership represents a landmark entry into the GCC. The move is part of the platform’s broader mission to provide less-dilutive capital solutions to high-growth, tech-enabled companies in emerging innovation hubs.
Rahul Shah, Partner at EvolutionX, commented on the investment, “Kitopi is a standout example of the kind of transformative, tech-driven scaled up business that EvolutionX has been set-up to empower, one that combines scale, innovation and execution to reshape a traditional sector. This investment marks our entry into the GCC, a region we see as a rising force in the global innovation landscape.”
About Kitopi
Kitopi is the Middle East’s largest next-gen F&B ecosystem, combining hospitality, culinary innovation, and technology. The company operates over 200 outlets across the UAE, KSA, Kuwait, Bahrain, and Qatar. Its portfolio includes homegrown brands such as Operation Falafel, Catch-22, Right Bite, Awani, and Taqado. Kitopi is backed by leading investors including SoftBank, Lunate, BECO Capital, CE Ventures, and Knollwood Capital.
Source: Jawlah
