Upcoming IPO: Cloud Kitchen Operator Curefoods Filed DRHP With SEBI For Rs 800 Crore Public Issue

Cloud kitchen operator Curefoods India, the parent company of brands like EatFit and CakeZone, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO).

The offering includes a fresh issue of shares worth Rs 800 crore and an Offer for Sale (OFS) of 4.85 crore equity shares by existing shareholders. A pre-IPO round of up to Rs 160 crore is also planned, which may reduce the fresh issue size if completed.

JM Financial, IIFL Capital Services, and Nuvama Wealth Management are the book-running lead managers for the IPO. KFin Technologies will be the registrar.

Investors Looking to Exit:

Several early investors are offloading their stakes through the OFS. These include Accel India, Iron Pillar, Curefit Healthcare, Chiratae Ventures, Global eCommerce Consolidation Fund, Alteria Capital Fund, and others.

Use of IPO Amount:

Curefoods plans to use the funds from its upcoming IPO to support business expansion, reduce debt, and invest in its subsidiaries. Out of the total amount, Rs 152.54 crore will go toward growth and equipment needs.

This includes Rs 126.32 crore to open new Krispy Kreme outlets, cloud kitchens, kiosks, and central kitchens; Rs 19.91 crore to add new brands to existing kitchens; and Rs 6.31 crore for purchasing machinery.

The company will also use Rs 126.93 crore to repay debt and Rs 40 crore to cover lease payments for its properties in India. Additionally, Rs 14 crore is set aside for marketing and promotional efforts.

Curefoods will invest Rs 91.96 crore in its subsidiary Fan Hospitality Services, Rs 11.35 crore in CakeZone Foodtechs, and Rs 81.15 crore to increase its stake in Millet Express Foods, Munchbox Frozen Foods, and Yum Plum.

Financial Growth:

Curefoods has shown strong financial growth, with its revenue rising from Rs 382 crore in FY23 to Rs 745 crore in FY25, reflecting a compound annual growth rate (CAGR) of nearly 40%. It operates 10 key brands, each generating over Rs 24 crore in revenue in FY25.

Curefoods ranks as one of India's leading digital-first food service companies (excluding food delivery marketplaces) by revenue, as of FY24.

Company Overview:

Based in Bengaluru, Curefoods operates as a tech-enabled, multi-brand food services platform. It runs popular brands like EatFit, Cakezone, Nomad Pizza, Krispy Kreme, and Olio Pizza.

The company says it operates in 70 cities and towns across the country, with a total of 502 service locations through 5 central kitchens, 281 cloud kitchens, 99 kiosks, 122 restaurants, and 13 warehouses.

The company offers a variety of cuisines via cloud kitchens, kiosks, and dine-in formats, primarily through its own app and platforms like Swiggy and Zomato.