Upcoming IPO: Curefoods India files DRHP with Sebi for public issue; Details here

Bengaluru, June 30, 2025 — Curefoods India Pvt. Ltd., a prominent player in India’s cloud kitchen segment, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The move comes as part of the company’s strategy to fuel its expansion, pare down debt, and strengthen its technological and operational capabilities.

The IPO marks a significant milestone for the Bengaluru-based company, which has rapidly emerged as one of the largest cloud kitchen operators in the country, boasting a robust portfolio of food brands such as EatFit, CakeZone, Nomad Pizza, and Great Indian Khichdi.

Issue Structure: Mix of Fresh Issue and Offer for Sale

According to the DRHP filed with SEBI, Curefoods plans to raise funds through a combination of a fresh issue of shares worth ₹300 crore and an offer for sale (OFS) of up to 13,068,811 equity shares by existing shareholders, including key investors like Iron Pillar, Accel, and Alteria Capital.

While the exact price band and lot size are yet to be disclosed, market participants expect the IPO size to range between ₹900 crore and ₹1,000 crore, depending on final valuations.

Use of Proceeds: Expansion, Tech Upgrades, and Debt Reduction

Curefoods has outlined in its DRHP that the net proceeds from the fresh issue will be primarily utilized for the following purposes:

• Opening new cloud kitchens across Tier-I and Tier-II cities.

• Investment in proprietary technology platforms, including AI-enabled demand forecasting and kitchen optimization tools.

• Repayment and pre-payment of certain borrowings.

• General corporate purposes, including marketing and brand-building initiatives.

Commenting on the development, Curefoods founder and CEO Ankit Nagori said, “We aim to use this IPO as a catalyst to deepen our presence in the cloud kitchen ecosystem and double down on technology and sustainability to deliver high-quality food experiences at scale.”

Business Snapshot: Scaling Cloud Kitchens Across India

Founded in 2020 by former Flipkart executive Ankit Nagori, Curefoods operates over 200 kitchens across 15 cities. It follows a multi-brand, multi-channel strategy, owning and operating several digital-first food brands under a single logistics and technology stack. The company's brands cater to varied consumer preferences, from health-conscious meals to indulgent desserts and regional Indian cuisines.

Curefoods has executed a series of strategic acquisitions in recent years, including Frozen Bottle, Cupcake Noggins, and CakeZone. These acquisitions have expanded its market reach and diversified its product offerings.

Financial Performance: Steady Growth Amid Rising Competition

In FY24, Curefoods reported a revenue of ₹544 crore, up from ₹342 crore in FY23, representing a growth of nearly 59%. However, the company is yet to turn profitable, with losses widening to ₹132 crore in FY24 from ₹109 crore the previous year. A significant portion of these losses was attributed to increased spending on expansion and marketing.

Despite the red ink, analysts remain optimistic. “Curefoods is at the inflection point of the cloud kitchen evolution in India,” said Vaibhav Jain, analyst at Nuvama Institutional Equities. “Though the industry is capital-intensive in the early stages, brand stickiness and economies of scale can yield strong returns in the long run.”

Market Context: IPO Boom in Consumer Tech

Curefoods’ IPO announcement arrives during a favorable window for public listings in India’s consumer internet and new-age business space. Several startups, including FirstCry, Swiggy, and Ola Electric, have either filed or are preparing their DRHPs. Investor appetite for tech-enabled consumer platforms remains robust, particularly those with scalable unit economics and visible brand recall.

According to data from Prime Database, over ₹72,000 crore has been raised via IPOs in India so far in FY25 — a 45% jump year-on-year.

Investor Outlook: Balanced Optimism with Caution

While Curefoods’ growth trajectory and multi-brand model are seen as positives, analysts caution that profitability remains a key concern.

“Investors must weigh the strong top-line growth against the mounting losses and the challenges in sustaining margins in the highly competitive food delivery and cloud kitchen market,” said Richa Bansal, consumer sector analyst at ICICI Securities. “Valuation comfort will depend on the final pricing and projected break-even timelines.”

Retail and institutional investors will closely track Curefoods’ performance metrics over the next few quarters, especially its ability to improve kitchen-level profitability and customer retention.

Curefoods' planned IPO could potentially redefine the market narrative around cloud kitchens in India. As one of the first major players from the segment to test public markets, its journey will be closely watched by peers, investors, and analysts alike. While the company’s fundamentals reflect promise and scale, prudent evaluation of risks — particularly around profitability and market saturation — will be crucial for prospective investors.