Dahmakan snaps up $18m Series B

Malaysian food delivery startup Dahmakan has secured $18 million in Series B funding.

Malaysian food delivery startup Dahmakan has secured $18 million in Series B funding. The investors included Rakuten Capital, White Star Capital, JAFCO Asian and the GEC-KIP Fund.

PRESS RELEASE

Kuala Lumpur, 27 Feb 2020 – Dahmakan, SouthEast Asia’s fastest growing direct-to-consumer delivery-only food startup, recently closed a US$18 million Series B funding round. The company, which is the first Malaysian startup funded by Y Combinator, operates a vertically-integrated food delivery model. The proceeds will be used to continue building their end-to-end operating system which powers the entire value chain from product development to last-mile delivery from a network of “satellite” distribution kitchens.

“Our mission from Day 1 was to build a chef-made, food delivery product that supported the selection and price point for the mass market to use every day. We knew, from our experience launching foodpanda in Hong Kong, that removing high delivery and operating costs, while bringing food closer to the consumer, would be a core part of this mission” said Jonathan Weins, CEO.

The product offering is customer-led, with Dahmakan soft-launching 40+ new dishes monthly from a growing database of 2,000+ tested dishes. Customer feedback, market insights and other data fuel Dahmakan’s product development approach to create a weekly changing menu of customer favourites, best-sellers and Dahmakan-exclusive creations.
Reimagining traditional food delivery meant scrapping the inefficient delivery and operations cost structures that exist in current food delivery aggregator models. Dahmakan does this by controlling the entire value chain from product development to last-mile delivery from “satellite” distribution kitchens. “We combine a small operational footprint across multiple locations to ensure lightning-fast delivery with high levels of automation in back-of-house operations, made possible through our investments in software and industrial design.” says Christian Edelmann, CTO.

Consumers eat at different price points throughout the week, and Dahmakan’s direct-to-consumer approach and hub-and-spoke model allows them to provide the highest value and quality for each price point. “This unique operating system makes our “satellite” distribution kitchens significantly more profitable and easier to operate than most major QSRs and we’re excited to bring this across the region” says Jonathan.

New institutional investors in this round include Rakuten Capital (investor in on-demand startups Lyft, Go-Jek, Careem and Glovo), White Star Capital (Freshly, Dollar Shave Club and Butternut Box), JAFCO Asian and the GEC-KIP Fund. Other investors include Korean food delivery unicorn Woowa Brothers, the former CEO of Nestlé Germany, and follow-on by existing investors, Partech Partners and Y Combinator.

“Dahmakan is well-positioned to serve the growing demand for food delivery services in South East Asia with its unique, technology-forward approach of taking control of the entire value chain to provide affordable food delivery options to SEA’s rising middle class” said Eric Martineau-Fortin, Managing Partner of White Star Capital. “Since our inception, White Star Capital has focused on high-growth companies in markets with strong entrepreneurial potential and solid teams with expertise at scaling businesses in the consumer sector. Dahmakan fits this profile, and we look forward to working with Jonathan and the team to continue to expand their market share in the fast-growing SEA Market.”