Colombian startup Foodology raises $50M to expand its business of virtual restaurants

The startup Foodology has just raised 50 million dollars, investment that will use to expand in Brazil and reach 100 restaurants before the end of this 2022. Among the list of new investors, stand out the popular reggaeton singer Maluma and the real estate investment trust Chimera Investments.

It is worth mentioning that the Colombian origin company is also looking for opportunities to buy brands or build alliances with existing restaurant companies that allow it to extend its reach in the short or medium term.

What is Foodology and how does it work?

It is an emerging company (startup) that creates and operates virtual restaurant brands in the region focused on delivery, taking advantage of technology and data to make a potentially scalable and less risky business.

So far, Foodology has reached a total of 85 restaurants located in various cities in the following countries: Brazil, Colombia, Mexico and Peru. It is worth noting that 65 of them were obtained during the last year (2021-2022).

In addition, it has 1,200 employees, 1,000 of whom belong to the kitchen. As for the most recognized brands with which it works, they stand out: Bruch & Munch, Avocalia, The Crunch, La Cuadra, Burritos & Co, Wings in da house, Bamboo Wok and Cacerola.

This new round of funding, in which previous investors such as a16z, Wollef and Kayyak Ventures participated, will focus on expanding to Brazil (as mentioned previously), where they only have seven operational kitchens.

“Despite the difficult market conditions today, our investors have supported us in our vision and we have seen an increase in our valuation,” Daniela Izquierdo, founder of Foodology startup, said about it.

A business model that gained notoriety during the pandemic

The dark, ghost or cloud kitchens have grown alongside the deliveries in recent months in the country. They are basically restaurants oriented exclusively to delivery, so by not serving the public, they save by occupying cheaper premises. This also allows them to operate different brands from one place.

Two species of referents of this business model, which gained notoriety during the coronavirus pandemic, are: Deliveroo in the United Kingdom and Rappi in Latin America.