Curefoods, a prominent Bengaluru-based cloud kitchen and food and beverages startup, has secured the green light from the capital markets regulator, the Securities and Exchange Board of India (SEBI), for its highly anticipated Initial Public Offering (IPO). This development, reported by Moneycontrol, signals a major milestone for the Indian food tech sector and the startup ecosystem at large. Curefoods boasts an impressive portfolio of popular brands including EatFit, CakeZone, Nomad Pizza, Krispy Kreme, and Shariff Bhai Biryani. The company operates over 500 cloud kitchens and offline stores across more than 40 cities in India, offering a diverse range of over 10 cuisines.
IPO Structure and Offer Details
The Curefoods IPO is structured as a mixed offering, comprising a fresh issue of shares worth ₹800 crore. In addition to the fresh issue, the IPO will also include an Offer-for-Sale (OFS) of 4. 85 crore shares. This OFS component will provide an opportunity for several early investors. To divest part or all of their stakes in the company. Curefoods was founded by Ankit Nagori, a former senior executive at Flipkart, who also serves as its CEO. Nagori has confirmed that he won't be selling any shares in the IPO, reflecting his long-term commitment and confidence in the company's future. The company had initially filed its Draft Red Herring Prospectus (DRHP) with SEBI in June 2025.
Details of the Offer-for-Sale (OFS)
The investors looking to offload their stakes through the OFS include prominent. Names such as Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare. Iron Pillar PCC will be the largest seller, offering 1. 91 crore shares. Crimson Winter will sell 97. 6 lakh shares, Accel will divest 45. 7 lakh shares, and Chiratae Ventures will offer 36. 6 lakh shares. Curefit Healthcare is also preparing to sell 12. 8 lakh shares. It's worth noting that Curefoods has the option to raise up to ₹160 crore through. A pre-IPO placement, which, if exercised, would reduce the size of the fresh issue in the IPO.
Strategic Utilization of IPO Proceeds
The funds generated from the fresh issue of shares in the IPO are earmarked for several key strategic initiatives, while the primary uses include establishing new cloud kitchens, expanding existing infrastructure, and repaying certain debts of the company. A portion of the capital will also be invested in Fan Hospitality, a wholly-owned subsidiary of Curefoods that manages kitchen infrastructure and operations. Also, some funds will be allocated towards lease deposits, marketing, and brand-building activities, which are crucial for enhancing the company's market presence and driving future growth.
Curefoods' Financial Health and Growth Trajectory
Financially, Curefoods has demonstrated strong revenue growth, with its revenue increasing from ₹382 crore in FY2023 to ₹746 crore in FY2025. Despite this impressive growth, the company has consistently reported losses. The net loss stood at ₹170 crore in FY2025, which was roughly at a similar level to the previous year, while however, a positive indicator is the reduction in EBITDA loss, which improved Importantly from ₹276 crore to ₹58 crore in FY2025, suggesting better operational efficiencies. Investors will closely scrutinize the company's path to profitability.
Key Risks for Potential Investors
Several key risks are associated with Curefoods that potential investors should consider. The company faces a high employee attrition rate, which was 111, while 73% in FY2025, and over 120% in the two preceding years. This high churn can impact operational stability and human resource management. Besides, Curefoods is heavily reliant on third-party aggregators like Swiggy and Zomato, which contributed 82, while 2% to its revenue in FY2025. The company has cautioned that any changes in platform policies or commission structures could Notably affect its margins, posing a risk to revenue stability. These risk factors warrant careful evaluation by prospective investors.
