Kitopi CEO Mohamad Ballout (Credit: Kitopi and iStock)
Kitopi, a startup that provides kitchen and delivery services to restaurants, has laid off 124 employees in New York — just months after raising $60 million to expand its U.S. operations.
In a notice published with the state this week, the company blamed “unforeseeable business circumstances” caused by the coronavirus for its decision to cut staff.
A spokesperson told Commercial Observer the company had taken “measures to ensure the overall sustainability of our business,” adding that the pandemic had “led to difficult decisions.”
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Founded in Dubai in 2017, Kitopi provides “ghost kitchens” — privately managed cooking spaces and staff — that can deliver for restaurants unable to keep up with the demands of food delivery.
In addition to its New York kitchens, the first of which was opened last November in Brooklyn, the company has 30 other kitchens in London and Dubai. Kitopi’s latest funding round announced in early February brought its total capital raised to $89 million, and was led by Knollwood and Lumia Capital. It also attracted investments from CE Ventures, GIC, Rise Capital, Reshape, Global Ventures and Wilshire Lane Partners. [CO] — Sylvia Varnham O’Regan