Curefoods, a multi-brand cloud kitchen operator, has successfully raised ₹160 crore in a pre-IPO funding round led by 3State Ventures, the investment arm of Flipkart co-founder Binny Bansal. This significant investment comes as the company prepares for its initial public offering (IPO), highlighting growing investor interest in the cloud kitchen sector.

Funding Details

The pre-IPO placement saw Curefoods allotting 1.28 crore equity shares at ₹124 per share. The company's board approved this allocation on September 10, followed by shareholder approval on September 15.

IPO Plans

Curefoods filed its Draft Red Herring Prospectus (DRHP) in June, outlining its plans for the upcoming IPO. The proposed public offering includes:

• A fresh issue of up to ₹800 crore
• An offer-for-sale of 4.08 crore shares by existing investors

Company Overview

Headquartered in Bengaluru, Curefoods has established a strong presence in the food industry with its diverse portfolio of brands:

• Popular food brands include EatFit, Nomad Pizza, and CakeZone
• Operational across 70+ cities in India
• 502 service locations comprising:
  • 281 cloud kitchens
  • 122 restaurants
  • 99 kiosks

Financial Performance

Curefoods has demonstrated impressive financial growth:

The company achieved a compound annual growth rate (CAGR) of 39.7% between FY23 and FY25, nearly doubling its revenue.

Utilization of IPO Proceeds

Curefoods plans to use the funds raised from the IPO for:

1. Expanding operations
2. Repaying existing debt
3. Investing in subsidiaries
4. Meeting working capital requirements

This pre-IPO funding from 3State Ventures marks a significant milestone for Curefoods as it gears up for its public offering. The investment not only provides additional capital but also brings the expertise of Binny Bansal, a seasoned entrepreneur in the Indian startup ecosystem. As the cloud kitchen industry continues to evolve, Curefoods' upcoming IPO will be closely watched by investors and industry observers alike.

Curefoods, India's second-largest internet-driven multi-brand food services player, is gearing up for a significant move in the public market. The company has announced plans to raise ₹800.00 crore through an initial public offering (IPO), combining fresh equity with an offer for sale of 4.85 crore shares.

Expansive Operational Footprint

Curefoods boasts an impressive operational network spanning 70 towns and cities across India. The company's infrastructure includes:

• 281 cloud kitchens
• 99 kiosks
• 122 restaurants
• 5 central kitchens

This extensive network allows Curefoods to prepare up to 1 lakh meals daily, showcasing its substantial production capacity.

Strong Financial Performance

The company has demonstrated robust financial growth, reporting a 27% increase in revenue, reaching ₹746.00 crore in the last fiscal year. This growth underscores the company's strong market position and the increasing demand for its diverse food offerings.

Asset-Light, Multi-Brand Strategy

Founder Ankit Nagori highlighted the company's strategic approach, emphasizing an asset-light, multi-brand model. Curefoods operates several popular brands across various meal segments, including:

• EatFit
• CakeZone
• Olio Pizza
• Krispy Kreme (franchise)

Advantages of Cloud Kitchens

The company's focus on cloud kitchens offers significant operational benefits:

These advantages contribute to Curefoods' efficient and scalable business model.

Technology-Driven Operations

Curefoods leverages advanced technology to optimize its operations:

• AI-powered demand estimation
• Production planning
• Logistics optimization
• Centralized management systems
• Direct API connectivity with food aggregators

This tech-forward approach enables Curefoods to streamline its processes and enhance overall efficiency.

Looking Ahead

With its planned IPO, Curefoods is poised to capitalize on the growing food delivery and cloud kitchen market in India. The company's multi-brand strategy, extensive operational network, and technology-driven approach position it well for potential future growth in the competitive food services industry.

As Curefoods prepares for its public debut, investors and industry observers will be keenly watching how this innovative player in the food services sector performs in the public market.