New Delhi10 minutes ago
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Bengaluru’s popular cloud kitchen company Curefoods is preparing to launch an IPO. According to media reports, CureFoods has also received approval from market regulator SEBI for its Initial Public Offering (IPO).
CureFoods operates brands like Eat Fit, Cakezone and Krispy Kreme. The company plans to raise Rs 800 crore from IPO. In this IPO, the company will issue new shares and some investors will sell 4.85 crore shares in Offer-for-Sale (OFS). However, the company’s founder and CEO Ankit Nagori is not selling his shares in this IPO.
Who is selling shares?
Investors who sold stake in the IPO include Iron Pillar, Crimson Winter, Accel, Chirate Ventures and CureFit Healthcare. CureFit Healthcare was started jointly by Mukesh Bansal and Ankit Nagori. Iron Pillar is selling the maximum 1.91 crore shares.
This is followed by Crimson Winter (97.6 lakh shares), Accel (45.7 lakh shares), and Chirate Ventures (36.6 lakh shares). CureFit Healthcare is selling 12.8 lakh shares. Iron Pillar is expected to benefit the most from this sale. Because the value of his stake is 2.6 times more than Excel and Chirate.
CureFoods almost doubled its earnings in the last two years. The company’s revenue was Rs 382 crore in FY23, which increased to Rs 746 crore in FY25.
What will happen to the IPO money?
CureFoods will use the funds raised from this IPO to open new cloud kitchens and improve the infrastructure. Apart from this, this fund will also be used in repayment of loan, deposit for rent, marketing and brand building. The company has another option that it can raise Rs 160 crore before the IPO. Due to which the number of new shares may reduce.
How is the financial condition of the company?
CureFoods has almost doubled its earnings in the last two years. The company’s revenue was Rs 382 crore in FY23, which increased to Rs 746 crore in FY25. But the company is still in loss. Its net loss in FY25 stood at Rs 170 crore, which is same as last year.
However, EBITDA loss declined to Rs 58 crore from Rs 276 crore. Still, the company has to spend Rs 1.27 for every Rs 1 it earns. That means cash burn is still a challenge for the company.
What are the risks for investors?
Before investing in Curefoods, it is important to keep some things in mind…
- Employee Turnover: Employee turnover stood at 111.73% in FY25, which was more than 120% in the previous two years. That means employees are leaving the company quickly.
- Dependence on third-parties: 82.2% of the company’s revenue comes from platforms like Swiggy and Zomato. Changes in the policy or commission (18-22%) of these platforms can have a big impact on the company’s profits.
- This IPO of CureFoods can be a big opportunity for those investors who want to bet in the food-tech sector. But considering the losses and risks of the company, it is also necessary to exercise caution.
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