Curefoods India Limited Plans ₹520.42 Crore IPO for Expansion and Debt Reduction
Curefoods India Limited plans a ₹520.42 crore IPO to fund expansion and debt reduction. The multi-brand food services company achieved 95% revenue growth from FY23-FY25, reaching ₹745.80 crores, while operating 10 key brands across 502 locations in 70+ cities. Despite strong growth, the company reports ₹169.97 crore loss in FY25 and faces challenges including 82% revenue dependence on food aggregators and 111% employee attrition rates.
*this image is generated using AI for illustrative purposes only.
Curefoods India Limited, positioned as the second largest digital-first food services company in India excluding food delivery marketplaces, is preparing for a ₹520.42 crore initial public offering through a fresh issue. The internet-driven multi-brand food services company operates a diversified portfolio of 10 key brands across 502 service locations in over 70 cities and towns as of March 31, 2025.
Strong Revenue Growth Despite Persistent Losses
The company has demonstrated robust revenue expansion over the past two years, with significant growth across key financial metrics:
| Financial Metric | FY2023 | FY2024 | FY2025 | Growth (FY24-25) |
|---|---|---|---|---|
| Revenue from Operations | ₹382.04 cr | ₹585.12 cr | ₹745.80 cr | +27.46% |
| Total Revenue | ₹411.55 cr | ₹635.09 cr | ₹775.49 cr | +22.11% |
| Net Loss | ₹342.73 cr | ₹172.61 cr | ₹169.97 cr | +1.53% |
| Total Assets | ₹952.53 cr | ₹866.15 cr | ₹1,042.71 cr | +20.38% |
Despite achieving a revenue compound annual growth rate of 39.65% from FY2023 to FY2025, the company continues to report significant losses, though these have decreased from ₹342.73 crores in FY2023 to ₹169.97 crores in FY2025.
Diversified Brand Portfolio and Market Presence
Curefoods operates through a comprehensive multi-channel approach encompassing cloud kitchens, kiosks, and restaurants. The company's 10 key brands, including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Olio Pizza, contribute 98.35% of revenue from operations in FY2025. This diversified portfolio caters to multiple price points and dietary preferences across various cuisines.
The company has demonstrated successful brand acquisition and scaling capabilities. Sharief Bhai revenue expanded from ₹353.18 million in FY2023 to ₹1,480.29 million in FY2025, while Olio Pizza achieved a 211.06% compound annual growth rate.
IPO Proceeds Utilization Strategy
The fresh issue proceeds of ₹520.42 crores will be allocated across multiple strategic initiatives:
| Purpose | Amount (₹ Crores) | Percentage |
|---|---|---|
| New cloud kitchens, restaurants, kiosks setup | ₹152.53 | 29.30% |
| Debt repayment/pre-payment | ₹126.93 | 24.39% |
| Investment in Fan Hospitality Services | ₹91.96 | 17.67% |
| Additional shareholding in subsidiaries | ₹81.15 | 15.59% |
| Lease payment expenditure | ₹40.00 | 7.69% |
| Sales and marketing initiatives | ₹14.00 | 2.69% |
The largest allocation toward expansion infrastructure reflects the company's growth-focused strategy, while significant debt reduction indicates efforts to strengthen the balance sheet.
Operational Challenges and Risk Factors
The company faces several operational challenges that potential investors should consider. Heavy dependence on food delivery aggregators represents a significant risk, with 82.20% of revenue in FY2025 coming from delivery channels via platforms like Swiggy and Zomato, which charge commission rates of 18-22% of net value.
Employee attrition presents another critical challenge, with rates of 111.73% in FY2025, 127.69% in FY2024, and 116.59% in FY2023. These extremely high turnover rates result in increased recruitment and training costs while potentially affecting operational efficiency.
The company also reports negative operating cash flows across all periods, with ₹101.96 crores negative operating cash flow in FY2025, though this represents an improvement from ₹185.35 crores in FY2023.
Management and Corporate Structure
Curefoods is led by CEO Ankit Nagori, supported by multiple Chief Operating Officers including Gokul Kandhi Umayorubhagan, Kshitij Budhani, and Shashi Ranjan Singh, with Godavarti Sivarama Bhaskar serving as CFO. The company, founded in 2020, maintains its registered office in Bengaluru, Karnataka, and operates under CIN U55209KA2020PLC139614.
The company benefits from strong institutional backing, with investors including 3State Ventures, Iron Pillar, Chiratae Ventures, and Accel India V supporting its growth trajectory.
Financial Position and Market Outlook
As of FY2025, the company maintains total assets of ₹1,042.71 crores with total equity of ₹517.48 crores. Current assets stand at ₹339.60 crores against current liabilities of ₹309.64 crores, providing a current ratio of 1.10 times.
The cost of materials represents 36.65% of revenue in FY2025, down from 44.95% in FY2023, indicating improving operational efficiency. However, the company operates without long-term supplier agreements, creating exposure to raw material price volatility.
With specific IPO pricing details including price band, opening date, and closing date not yet available, investors await further announcements regarding the public offering timeline and valuation parameters.
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