Curefoods raises Rs 300 crore from Binny Bansal's fund, IronPillar and others

Ankit Nagori, founder, Curefoods

House of brands Curefoods has raised Rs 300 crore (about $37 million) in a new funding round led by Flipkart founder Binny Bansal's fund Three State Ventures, IronPillar and others, as it gears up for expansion and offline foray.

The funding consisted of primary and secondary equity and debt, with Three State Ventures leading the round with a cheque of Rs 240 crore, Curefoods said in a statement on April 6.

"This funding will allow us to reach new customers and markets while also targeting our offline model expansion," Curefoods founder Ankit Nagori said.

Besides IronPillar and Three State Ventures, Chiratae Ventures, ASK Finance and Winter Capital also participated in the round.

Expanding footprint

Curefoods said it would use the funds to diversify its brands into offline formats from online-only cloud kitchen presence. The company also aims to expand in tier 1 and 2 cities in the north and the west of India, it said.

The company has set a target of Rs 1,000 crore annualised revenue run rate (ARR) by the end of 2023, it said. During the period, it also plans to open at 50 more locations with an aim of managing 2 million orders a month.

“We are excited about the future of consumer brands and look forward to innovating and leading brands in this space for India, while delivering authentic and nutritious food to many Indians, according to the Indian taste palette," Nagori said.

The company did not disclose the valuation at which it raised the new round. As reported by Moneycontrol, in June 2022, Curefoods closed its Series C round of $50 million from a mix of new and existing investors led by Winter Capital. In early 2022, the startup was valued in the range of $250-$400 million.

Curefoods said that in FY23, it saw year-on-year growth of over 300 percent. In FY22, it reported operating revenue of Rs 215.7 crore. A 300 percent increase suggests that revenue topped Rs 800 crore in FY23. The company, however, reported a loss of Rs 681 crore in FY22.

It continues to focus on profitability and achieving growth and presence around India in the coming years, it said.

Curefoods said its gourmet pizza offer Nomad Pizza and the biryani brand Sharief Bhai are the fastest-growing brands, growing at over 50 percent quarter-on-quarter.

In December 2022, Curefoods crossed 1.1 million orders a month, resulting in annual recurring revenue of Rs 550 crore, it said.

Founded in 2016 by Nagori, a former Flipkart executive, the Bengaluru-based startup competes with Rebel Foods, Biryani by Kilo, and EatClub (formerly Box8), which are at the forefront of this industry and are building house of food brands.

The strategy is similar to the one followed by US-based breakout startup Thrasio, which acquires top-rated and fast-growing sellers on Amazon, helping them with technology, digital marketing, and sales chops to turbocharge growth.