EvolutionX, a private credit platform by Temasek and DBS Bank, has made its inaugural Gulf investment, leading a $50 million debt financing for Kitopi. This funding supports the Middle East’s leading F&B ecosystem following its recent achievement of profitability. The capital is earmarked to fuel the expansion of Kitopi's homegrown brands and accelerate its franchising strategy across the region.
A Strategic Financial Partnership
This investment marks a strategic shift for Kitopi towards less-dilutive capital, a move that preserves ownership for its founders and investors. The financing follows the company's major milestone of reaching profitability, positioning it for growth from a stable foundation. This approach allows Kitopi to scale aggressively while maintaining control over its equity and long-term vision.
For EvolutionX, the partnership aligns with its mission to provide flexible debt solutions to high-growth, tech-enabled companies. The platform targets businesses in the growth to pre-IPO stage across emerging innovation hubs. This deal underscores its strategy of backing market leaders that are reshaping traditional industries through technology and innovation.
Fueling Regional and Global Expansion
Kitopi will allocate the new capital to expand its homegrown brands across key Gulf markets, including the UAE and Saudi Arabia. A primary focus will be accelerating its regional and international franchising plans, extending its reach beyond its current footprint. This strategy aims to solidify its market leadership and introduce its concepts to new audiences globally.
Mohamad Ballout, CEO of Kitopi, stated that the funding positions the company to capitalize on growing demand for its brands. He emphasized the parallel scaling of its loyalty app alongside its geographic expansion efforts. Ballout noted the company's evolution from a local presence to a regional platform now poised for global momentum.
Technology at the Core of F&B Innovation
Kitopi's success is built upon a robust network of over 200 locations, including both dine-in restaurants and delivery-only kitchens. This hybrid model allows the company to cater to diverse consumer preferences and capture a wider market share. The extensive physical footprint provides a solid base for its ongoing expansion and franchising initiatives.
Powering this ecosystem is SKOS, Kitopi's proprietary technology stack that drives efficiency and consistency across its operations. The system facilitates advanced inventory management, provides deep consumer data analytics, and streamlines workflows. This tech-first approach is central to Kitopi's ability to scale effectively while maintaining high standards of quality.
EvolutionX's Inaugural Move into the GCC
Rahul Shah, a Partner at EvolutionX, described Kitopi as a standout example of the transformative businesses the platform was established to support. He praised the company for its unique combination of scale, innovation, and execution in reshaping the F&B sector. This partnership reflects EvolutionX's confidence in Kitopi's business model and its leadership team's vision.
This investment marks EvolutionX's official entry into the GCC, a region Shah identified as a rising force in global innovation. Since its 2022 launch, the platform has committed approximately $450 million to leading companies across Asia. Its expansion into the Middle East signals the region's growing importance as a hub for high-growth enterprises.
The $50 million financing led by EvolutionX serves as a powerful endorsement of Kitopi's innovative business model and its leadership in the Middle East. This partnership not only provides Kitopi with capital for its next growth phase but also highlights the GCC's attractiveness to global investors. It represents a significant milestone for both companies as they collaborate to shape the future of food experiences.