Curefoods Gets SEBI Nod for ₹800 Crore IPO: Iron Pillar, Accel, Chiratae Among Key Sellers

Bengaluru-based cloud kitchen operator Curefoods, the parent company of EatFit, CakeZone, and Krispy Kreme India, has secured approval from the Securities and Exchange Board of India (SEBI) to launch its ₹800 crore initial public offering (IPO). The public issue will include both a fresh equity issue and an offer for sale (OFS) by existing investors, allowing several early backers to pare down or exit their holdings.

Key Investors to Trim Stakes

• The upcoming IPO will see partial exits from major investors including Iron Pillar, Accel, Chiratae Ventures, Crimson Winter, and Curefit Healthcare.
• Iron Pillar will be the largest seller, offloading nearly 1.91 crore shares.
• Crimson Winter plans to sell 97.6 lakh shares, while Accel and Chiratae Ventures will sell 45.7 lakh and 36.6 lakh shares, respectively.
• Curefit Healthcare, co-founded by Mukesh Bansal and Ankit Nagori, will offload a smaller tranche of 12.8 lakh shares.
• Founder and CEO Ankit Nagori has confirmed that he will not sell any shares in this IPO.

IPO Proceeds to Fund Expansion and Debt Reduction

Curefoods plans to utilize the ₹800 crore proceeds primarily to expand its cloud kitchen network and strengthen operations:

₹152.5 crore will go toward setting up new kitchens and infrastructure.

₹126.9 crore is earmarked for loan repayment and debt reduction.

₹92 crore will be infused into Fan Hospitality, a wholly owned subsidiary managing kitchen operations.

Additional allocations include ₹40 crore for lease deposits and ₹14 crore for marketing and brand building

The company also has an option to raise ₹160 crore via a pre-IPO placement, which may reduce the size of the fresh issue.

Curefoods’ Financial Performance: Revenue Doubles, Losses Persist

Curefoods has shown strong revenue growth, nearly doubling from ₹382 crore in FY23 to ₹746 crore in FY25. However, the company remains loss-making.

Net loss stood at ₹170 crore in FY25, similar to the previous fiscal year.

EBITDA loss narrowed significantly from ₹276 crore to ₹58 crore, reflecting improving operational efficiency.

Despite progress, Curefoods continues to spend ₹1.27 to earn every ₹1, highlighting ongoing cash burn issues.

Major Risks: High Attrition and Platform Dependence

Curefoods faces several structural challenges:

Employee attrition remains extremely high at 111.7% in FY25, following two consecutive years above 120%.

The company relies heavily on food delivery platforms like Swiggy and Zomato, which contributed over 82% of its FY25 revenue.

Any change in aggregator commission rates (currently 18–22%) could significantly impact profit margins.

Curefoods’ IPO marks a key milestone for India’s growing cloud kitchen and food-tech industry. While strong brand visibility and revenue growth boost investor interest, continued losses and operational risks may test investor confidence. Analysts expect the company to focus on diversification, direct order channels, and cost efficiency post-listing.

FAQs on Curefoods IPO

1. What is the size of the Curefoods IPO?

The total IPO size is ₹800 crore, including both a fresh issue and an offer for sale by existing investors.

2. Which investors are selling shares in the Curefoods IPO?

Key investors such as Iron Pillar, Accel, Chiratae Ventures, Crimson Winter, and Curefit Healthcare will be selling shares.

3. How will Curefoods use the IPO funds?

The funds will be used for expanding cloud kitchens, repaying debt, supporting subsidiary operations, and brand marketing.

4. What is Curefoods’ current financial performance?

Curefoods reported ₹746 crore revenue in FY25, nearly double from FY23, with ₹170 crore net loss and reduced EBITDA loss of ₹58 crore.

5. What are the main risks for Curefoods investors?

High employee attrition, cash burn, and dependence on delivery aggregators like Swiggy and Zomato remain major risks.