Curefoods, a leading cloud kitchen company based in Bengaluru, Karnataka, India, has filed for an ₹800 crore ($95 million) IPO amid mounting losses, high attrition, and reliance on aggregators like Swiggy and Zomato. The offering aims to repay debt, expand kitchen infrastructure, and allow major investors like Iron Pillar and Accel to partially exit. While revenue has grown significantly, profitability and operational sustainability remain key concerns.
Curefoods, a prominent Indian cloud kitchen company headquartered in Bengaluru, Karnataka, has filed its Draft Red Herring Prospectus (DRHP) with the market regulator for a ₹800 crore ($95 million) Initial Public Offering (IPO). The company operates well-known brands including EatFit, CakeZone, and India’s franchise of Krispy Kreme.
The IPO will include a fresh issue and an offer-for-sale (OFS) of 4.85 crore shares, allowing early investors such as Iron Pillar, Accel, Chiratae Ventures, Crimson Winter, and Curefit Healthcare to trim their stakes. Notably, co-founder Ankit Nagori is not divesting any shares.
Investor Exits: Iron Pillar Takes the Largest Slice
Among exiting investors, Iron Pillar PCC will offload 1.91 crore shares, significantly more than Crimson Winter (97.6 lakh shares), Accel (45.7 lakh), and Chiratae (36.6 lakh). Curefit, co-founded by Mukesh Bansal and Nagori, plans to exit a modest 12.8 lakh shares. Iron Pillar is set to gain the most, with an exit value 2.6 times higher than Accel or Chiratae based on acquisition cost.
Operational Alarms: Attrition and Aggregator Dependence
Curefoods faces serious internal challenges. Employee attrition hit 111.73% in FY25, continuing a trend from FY24 (127.69%) and FY23 (116.59%). As of March 31, 2025, the company had 5,641 permanent staff and over 600 additional contractual and consulting personnel.
Meanwhile, 82.2% of FY25 revenue came through aggregator platforms like Swiggy and Zomato—a dependence Curefoods flags as a key business risk. These platforms charge 18–22% commissions, pressuring margins and making policy shifts a major vulnerability.
High Burn Rate and Profitability Concerns
Despite doubling revenue from ₹382 crore in FY23 to ₹746 crore in FY25, Curefoods remains unprofitable. FY25 net loss stood at ₹170 crore. While EBITDA losses have narrowed from ₹276 crore to ₹58 crore over two years, the company still spends ₹1.27 for every ₹1 earned. This underscores Curefoods’ reliance on capital inflow to sustain its working capital-heavy model.
IPO Proceeds: Expansion and Debt Repayment
Out of the ₹800 crore raised, Curefoods plans to use:
- ₹152.5 crore for new kitchen infrastructure
- ₹126.9 crore for repayment/prepayment of borrowings
- ₹40 crore for lease deposits
- ₹92 crore for Fan Hospitality, its wholly owned kitchen operations subsidiary
- ₹14 crore for marketing across its food brands
Additionally, a pre-IPO placement worth ₹160 crore is under consideration, which could reduce the fresh issue size.
As Curefoods readies for listing, it presents a classic case of growth at scale—but without profitability. For investors, the IPO offers access to a high-revenue, multi-brand foodtech company with established urban presence. But challenges like high employee churn, aggregator dependence, and continued cash burn pose significant risks that may impact long-term value.
