Curefoods Eyes IPO to Fuel Tier-2 City Expansion
Curefoods, a Bengaluru-based multi-brand food services company, is preparing for an IPO to finance its expansion into Tier-2 cities. The IPO includes a fresh issue of Rs 800 crore and an offer for sale of 4.85 crore equity shares. The company reported a 27.46% year-on-year increase in operating revenues, reaching Rs 746 crore. Expansion plans include setting up new cloud kitchens, restaurants, and Krispy Kreme Theatres. Funds will also be used for developing a central kitchen, acquiring stakes in subsidiaries, debt reduction, and marketing. Curefoods operates brands like EatFit and CakeZone across 502 locations in 70 Indian cities. The company aims to capitalize on rising disposable incomes and digital payment penetration in Tier-2 cities, with the Indian food services market projected to reach Rs 12-12.60 lakh crore by 2030.
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Curefoods, a multi-brand food services company based in Bengaluru, is gearing up for an Initial Public Offering (IPO) to fund its ambitious expansion plans into Tier-2 cities. The company, which has shown significant growth in recent years, sees untapped potential in smaller urban centers across India.
Strong Financial Performance
Curefoods reported impressive financial results, with operating revenues reaching Rs 746.00 crore, marking a 27.46% year-on-year increase. The company currently operates from 502 service locations spread across 70 towns and cities in India.
IPO Details
The upcoming IPO comprises two components:
- A fresh issue worth Rs 800.00 crore
- An offer for sale of 4.85 crore equity shares
Expansion Strategy
A significant portion of the IPO proceeds, approximately Rs 152.53 crore, is earmarked for expansion. This expansion plan includes:
- Setting up new cloud kitchens
- Opening additional restaurants and kiosks
- Establishing Krispy Kreme Theatres
Additional Fund Utilization
The remaining funds from the IPO will be allocated to:
- Developing a central kitchen
- Acquiring stakes in subsidiaries, including Cakezone Foodtech and Millet Express Foods
- Reducing debt
- Strengthening marketing efforts
Company Background
Founded in 2020 by Ankit Nagori, Curefoods has quickly established itself in the food services market. The company operates several popular brands, including:
- EatFit
- CakeZone
- Olio Pizza
- Sharief Bhai Biryani
Market Opportunity
Curefoods' focus on Tier-2 cities is driven by two key factors:
- Rising disposable incomes in these areas
- Increasing penetration of digital payment solutions
The company sees these trends as catalysts for growth in the food services sector beyond major metropolitan areas.
Industry Outlook
The Indian food services market is experiencing robust growth:
- Current valuation: Rs 6.60 lakh crore
- Projected valuation: Rs 12.00-12.60 lakh crore by 2030
This projected growth underscores the potential that Curefoods aims to tap into with its expansion strategy.
As Curefoods prepares for its IPO and sets its sights on Tier-2 cities, it positions itself to capitalize on the evolving landscape of India's food services industry. The success of this expansion could significantly impact the company's future growth trajectory and market position.
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