-KH News Desk (editorial1@imaws.org)
Cloud kitchen major Curefoods, which operates a portfolio of brands including EatFit, CakeZone, and Krispy Kreme, has received the crucial nod from the Securities and Exchange Board of India (SEBI) to proceed with its Initial Public Offering (IPO). The issue is slated to raise Rs 800 crore and will comprise both a fresh issue of shares and an Offer for Sale (OFS), marking a significant step for the Bengaluru-based startup as it prepares to list on the Dalal Street. The move places Curefoods among a growing list of Indian startups, such as Shadowfax, Wakefit, Capillary Technologies, and Lenskart, that are gearing up to go public.
The company’s financial performance shows remarkable revenue growth alongside improving operating efficiencies, despite remaining loss-making. Curefoods nearly doubled its revenue in just two years, surging from Rs 382 crore in FY23 to Rs 746 crore in FY25. While the net loss stood at Rs 170 crore in FY25, broadly unchanged year-on-year, the startup demonstrated sharp improvements in core profitability, with EBITDA losses narrowing significantly from Rs 276 crore to just Rs 58 crore over the same period. However, challenges persist, as the company still incurs a cash burn, spending Rs 1.27 to earn every Rs 1 in revenue, and faces high employee churn, with attrition recorded at 111.7% in FY25.
The funds raised through the fresh issue portion of the IPO will be channeled into key strategic growth areas. Curefoods plans to dedicate Rs 152.5 crore to expanding its cloud kitchen network and underlying infrastructure, reflecting its core strategy of scaling its geographical footprint. An additional Rs 126.9 crore has been earmarked for the repayment of existing borrowings, while Rs 92 crore will be invested into its subsidiary, Fan Hospitality, which is responsible for managing kitchen operations. Smaller allocations include Rs 40 crore for lease deposits and Rs 14 crore for marketing and brand-building activities. The company also maintains the option to reduce the size of the fresh issue by up to Rs 160 crore, should it successfully raise capital through a potential pre-IPO placement, such as the Rs 160 crore pre-IPO round previously secured from 3State Ventures, founded by Flipkart co-founder Binny Bansal.
The Offer for Sale (OFS) component of the issue involves the divestment of up to 4.85 crore shares, allowing several early investors to partially or fully monetize their holdings. Notable investors reducing their stakes include Iron Pillar (set to be the largest seller, divesting 1.91 crore shares), Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare. Significantly, Ankit Nagori, the founder and CEO of Curefoods, is not participating in the OFS, opting to retain his entire holding, which signals strong confidence in the company’s long-term future.
A critical business risk highlighted by the company is its heavy reliance on major food aggregators for distribution. In FY25, platforms like Swiggy and Zomato contributed over 82% of Curefoods’ total revenue. The company cautioned that any changes in the aggregators’ commission structures, which currently range between 18–22%, could materially impact its overall profitability, underscoring the need for the startup to potentially diversify its sales channels moving forward.
