Curefoods IPO: Exit feasts, attrition alarms, and growth plans decoded

Curefoods founder Ankit Nagori

Curefoods, the Bengaluru-based cloud kitchen operator behind EatFit, CakeZone and Krispy Kreme, is prepping for a Rs 800 crore IPO. The offering includes a fresh issue to repay debt and expand its kitchen footprint, along with a 4.85 crore share offer-for-sale (OFS) that will give several early backers a chance to cash out.

Among those trimming stakes are Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, Curefit and a handful of others. Founder Ankit Nagori is not selling any shares.

Big exits for early diners

Of all the investors pulling up a chair at the exit table, Iron Pillar PCC is biting off the biggest piece—offloading 1.91 crore shares. That’s nearly double Crimson Winter’s 97.6 lakh, and over four times what Accel India V (45.7 lakh) and Chiratae Ventures India Fund IV (36.6 lakh) are selling. Curefit Healthcare, co-founded by Mukesh Bansal and Ankit Nagori, is exiting a smaller tranche of 12.8 lakh shares.

But it’s not just about quantity—returns are where it gets interesting. Based on the weighted average acquisition price, Iron Pillar is set for an exit value 2.6x higher than Accel and Chiratae, making it the biggest beneficiary of the IPO. While pricing details are under wraps, those who got in early look well positioned to cash in.

Key risks

If there’s one metric that’s off the charts, it’s employee churn. Attrition at Curefoods stood at 111.73 percent in FY25, 127.69 percent in FY24, and 116.59 percent in FY23—meaning the company has been replacing more staff each year than it retains. As of March 31, 2025, Curefoods had 5,641 permanent employees, along with 376 contractual staff and 265 consultants and interns.

Even more critical is the company’s dependence on third-party platforms. A staggering 82.2 percent of Curefoods’ FY25 revenue came via the delivery channel, which includes Swiggy and Zomato. That figure was even higher in previous years—85.61 percent in FY24 and 86.51 percent in FY23. The company warns that any adverse changes in these platforms’ policies or operations could materially affect its revenue and margins, especially considering the 18–22 percent commissions it pays to stay visible.

Curefoods also continues to burn cash at a steep rate. In FY25, its total expenses stood at Rs 944 crore against revenue of Rs 746 crore, meaning it spent Rs 1.27 to earn every Rs 1. Despite revenue growth, the company remains structurally reliant on external capital to sustain operations. Its model is also working capital intensive—requiring large upfront investments in kitchens, cold-chain assets, lease deposits and brand marketing. Any cash flow mismatch could derail expansion plans.

Where the money goes

Of the Rs 800 crore primary issue, Curefoods plans to deploy Rs 152.5 crore to set up new cloud kitchens and expand infrastructure. Rs 126.9 crore is earmarked for repayment or prepayment of borrowings, while Rs 40 crore will go towards lease rental and security deposits.

A further Rs 92 crore will be invested in Fan Hospitality, the company’s wholly owned subsidiary that manages kitchen infrastructure and operations. Rs 14 crore has been allocated for marketing and brand-building efforts across its food brands. Curefoods has also left room for a Rs 160 crore pre-IPO placement, which, if completed, would proportionally reduce the fresh issue size.

Revenue, not returns

Curefoods has nearly doubled revenue in two years—from Rs 382 crore in FY23 to Rs 746 crore in FY25. But profitability remains elusive. Net loss stood at Rs 170 crore in FY25, roughly the same as the year before. While EBITDA losses have narrowed significantly—falling from Rs 276 crore to Rs 58 crore over two years—the company still burns Rs 1.27 for every rupee it earns.

As it preps for listing, Curefoods is serving up strong revenue growth and brand expansion. But with persistent losses, aggregator dependence, and retention challenges, investors will need to decide whether the scale story has enough seasoning—or if it still needs time to simmer.