NewsIPOCurefoods IPO Analysis - Multi-Brand Digital Food Services Company Plans Public OfferingCurefoods IPO Analysis - Multi-Brand Digital Food Services Company Plans Public Offering
Curefoods India Limited, operating 10 key brands across 502 locations in 70+ cities, demonstrates strong revenue growth of 39.53% CAGR from FY23-25 reaching ₹745.80 crores, though continues reporting losses of ₹169.97 crores in FY25. The company faces critical challenges including 82% dependence on food delivery aggregators, 111% employee attrition rates, and negative operating cash flows, while maintaining market leadership position and advanced technology infrastructure with strong institutional backing.
*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 an initial public offering to fuel expansion and strengthen its financial position. 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 39.53% from FY2023 to FY2025, the company continues to report significant losses, though these have decreased substantially from ₹342.73 crores in FY2023 to ₹169.97 crores in FY2025.
Comprehensive IPO Proceeds Utilization Strategy
The company plans to utilize IPO proceeds across multiple strategic initiatives focused on expansion and debt optimization:
| 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% |
| Investment in Cakezone | ₹11.35 | 2.18% |
| Deferred consideration payments | ₹2.50 | 0.48% |
The largest allocation toward expansion infrastructure reflects the company's growth-focused strategy, while significant debt reduction indicates efforts to strengthen the balance sheet.
Diversified Brand Portfolio and Market Leadership
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, showcasing the company's ability to scale acquired brands effectively.
Critical Risk Factors and Operational Challenges
The company faces several significant operational challenges that potential investors must consider. Heavy dependence on food delivery aggregators represents the most critical 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.
| Risk Factor | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Employee Attrition Rate | 116.59% | 127.69% | 111.73% |
| Delivery Channel Dependency | 86.51% | 85.61% | 82.20% |
| Operating Cash Flow | ₹-185.35 cr | ₹-116.84 cr | ₹-101.96 cr |
| Cost of Materials (% of Revenue) | 44.95% | 39.24% | 36.65% |
Employee attrition presents another critical challenge, with rates exceeding 110% across all periods. These extremely high turnover rates result in increased recruitment and training costs while potentially affecting operational efficiency. However, the company shows improvement in operating cash flows and material cost optimization.
Technology Infrastructure and Competitive Advantages
Curefoods leverages advanced technology infrastructure including AI-driven demand estimation, unified order management systems, and direct API connectivity with delivery platforms. The company maintains ISO 22000:2018 certified central kitchens with temperature-controlled systems and comprehensive quality control measures.
The company benefits from strong institutional backing, with investors including 3State Ventures, Iron Pillar, Chiratae Ventures, and Accel India V supporting its growth trajectory. Led by CEO Ankit Nagori with over 15 years of experience, the management team brings significant expertise in scaling digital food services operations.
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, indicating adequate short-term liquidity.
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 the company's position as India's second largest digital-first food services player and its extensive network of 502 service locations, Curefoods is well-positioned to capitalize on the growing digital food services market, though investors should carefully consider the operational challenges and path to profitability.
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