Bengaluru-based cloud kitchen operator Curefoods, which runs EatFit, CakeZone and Krispy Kreme, has received approval from capital markets regulator Sebi for its Rs 800 crore initial public offering (IPO), people aware of the development told Moneycontrol.
The IPO will comprise a fresh issue and an offer-for-sale (OFS) of up to 4.85 crore shares, giving several early investors an opportunity to partially or fully exit. Founder and CEO Ankit Nagori will not be selling any shares in the public issue.
Who’s selling shares in the IPO?
Among the investors trimming stakes are Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare, which was co-founded by Mukesh Bansal and Nagori.
As Moneycontrol reported earlier, Iron Pillar PCC is the biggest seller, offloading 1.91 crore shares—nearly double Crimson Winter’s 97.6 lakh, and over four times what Accel (45.7 lakh) and Chiratae (36.6 lakh) are selling. Curefit is exiting a smaller tranche of 12.8 lakh shares.
Iron Pillar is also set to be the biggest beneficiary of the IPO, with an estimated exit value 2.6x higher than Accel and Chiratae, based on the weighted average acquisition price.
How will Curefoods use the IPO proceeds?
Of the Rs 800 crore primary issue, Curefoods plans to deploy Rs 152.5 crore to set up new cloud kitchens and expand infrastructure, and Rs 126.9 crore for repayment or prepayment of borrowings.
Another Rs 92 crore will go to Fan Hospitality, its wholly owned subsidiary that manages kitchen infrastructure and operations. The company has also earmarked Rs 40 crore for lease deposits and Rs 14 crore for marketing and brand-building.
It has the option to raise Rs 160 crore through a pre-IPO placement, which could proportionally reduce the fresh issue size.
How is Curefoods performing financially?
Curefoods has nearly doubled its revenue in two years—from Rs 382 crore in FY23 to Rs 746 crore in FY25—but continues to post losses.
Net loss stood at Rs 170 crore in FY25, roughly flat year-on-year, while EBITDA losses narrowed sharply from Rs 276 crore to Rs 58 crore over the same period.
However, the company continues to burn cash, spending Rs 1.27 to earn every Rs 1.
What are the key risks for investors?
Employee churn remains high, with attrition at 111.73 percent in FY25, after crossing 120 percent in the two previous years.
Curefoods also remains heavily dependent on third-party aggregators like Swiggy and Zomato, which accounted for 82.2 percent of its FY25 revenue.
The company warns that any changes in platform policies or commissions—currently around 18–22 percent—could materially affect margins.
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