Curefoods Files Draft Papers For INR 800 Cr IPO

Over a month after converting into a public company, cloud kitchen startup Curefoods has now filed its draft red herring prospectus (DRHP) with the markets regulator SEBI to raise funds via initial public offering (IPO).

The IPO will comprise a fresh issue of shares worth up to INR 800 Cr ($304 Mn) and an offer for sale (OFS) of up to 4.85 Cr equity shares by existing shareholders.

As part of the OFS, investors Iron Pillar PCC, Crimson Winter, Accel India V (Mauritius), Chiratae Ventures India Fund IV, along with other shareholders Global eCommerce Consolidation Fund, Alteria Capital Fund and Curefit Healthcare will be offloading shares.

The Bengaluru-based Curefoods may consider fund raising in pre-IPO round. If it completes the pre-IPO placement, then the size of the fresh issue will be reduced accordingly.

Post IPO, shares of Curefoods will be listed on the NSE and the BSE.

Proceeds from the IPO to the tune of INR 152.53 Cr will be deployed for expansion and equipment, including INR 126.3 Cr for setting up new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens; INR 19.91 Cr for expanding certain existing cloud kitchens through brand additions, and INR 6.31 Cr for purchasing machinery and equipment.

To note, Curefoods acquired pan-India rights for the doughnut and coffee brand Krispy Kreme, in May.

In addition, INR 126.93 Cr will be used for payment of debt, INR 40 Cr for lease payments for the company’s current properties in India and INR 14 Cr on sales and marketing efforts.

Also, the company plans to invest INR 91.96 Cr in its subsidiary, Fan Hospitality Services, another INR 11.35 Cr will be invested in Cakezone Foodtechs and INR 81.15 Cr will be used for acquiring further shareholding in three subsidiaries — Millet Express Foods, Munchbox Frozen Foods and Yum Plum.

Founded in 2020 by former Flipkart executive Ankit Nagori, Curefoods houses a variety of brands such as EatFit, Cake Zone, Nomad Pizza, Frozen Bottle, Sharief Bhai Biryani, among others.

Curefoods has been planning to raise INR 25 Cr debt from Alteria Capital, where its board passed a special resolution on April 2 to issue 2,500 Series D redeemable non-convertible debentures (NCDs) to raise the sum from Alteria Capital Fund II – Scheme 1.

Earlier this year, the startup also made an investment in packaged ice solutions Dras Ice, without disclosing the financial terms of the deal, where it aimed to leverage Dras Ice’s frozen chain logistics to improve its distribution capabilities for cloud kitchens and quick-service restaurants (QSRs).

On the financial front, Curefoods trimmed its net loss by 49.64% to INR 172.6 Cr in the financial year ended March 2024 (FY24) from INR 342.7 Cr in FY23. Curefoods’ operating revenue also zoomed 53.17% to INR 585.1 Cr in FY24 from INR 382 Cr in the previous fiscal year.

Meanwhile, market rival Rebel Foods, which is gearing up for a public-market listing in 2025-26, secured $25 Mn (around INR 212.71 Cr) from Qatar Investment Authority, at a valuation of $1.4 Bn, based on reports.

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