Curefoods Rs 800 Crore IPO Gets SEBI Nod: Market Expansion

Curefoods, a Bengaluru-based cloud kitchen operator, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) worth Rs 800 crore. The company operates popular brands like EatFit, CakeZone, and Krispy Kreme and plans to raise funds through a combination of a fresh issue and an offer-for-sale (OFS) of up to 4.85 crore shares, giving existing investors a chance to partly or fully exit their investments. Notably, founder and CEO Ankit Nagori will retain his entire stake and will not participate in the share sale.

The Rs 800 crore IPO consists of a fresh issue and an OFS portion. Early investors including Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare, are expected to sell shares, with Iron Pillar set to be the largest seller offloading around 1.91 crore shares. The fresh issue portion will be used by Curefoods primarily to expand its cloud kitchen network and infrastructure, repay debt, strengthen its subsidiary Fan Hospitality Services, and promote marketing and brand-building activities. Out of the fresh issue proceeds, approximately Rs 152.5 crore will go toward network expansion, Rs 126.9 crore toward loan repayment, and Rs 92 crore will be invested in subsidiary operations.

Curefoods has shown strong revenue growth, nearly doubling its income to Rs 745.8 crore in the financial year ending March 2025 compared to Rs 585.1 crore the previous year. However, the company continues to operate at a loss, with a net loss of around Rs 170 crore in FY25, which is only slightly improved from the previous year. This ongoing loss is typical of many startups focusing on rapid expansion in competitive sectors like cloud kitchens. The IPO is seen as a crucial step for Curefoods to raise capital necessary for scaling operations while managing financial challenges.

Curefoods’ IPO marks its entry onto Dalal Street and places it among a growing number of Indian startups going public in 2025. The cloud kitchen sector is expanding rapidly given changing consumer food habits and the growing online food delivery market. However, strong competition from other players, including Rival Rebel Foods who is also preparing for a public listing next year, persists. The IPO provides a platform for Curefoods to not only secure funding but also strengthen its market presence and brand credibility. Investors will be watching closely how the company balances growth ambitions with profitability in a highly dynamic market.

At this stage, Curefoods’ IPO is broadly viewed as an opportunity for investors to participate in the evolving foodtech sector while providing the company the means to fuel further expansion. The mix of fresh equity and OFS allows early backers to realize gains, while underlining confidence in the company's long-term potential. The performance post-listing will depend on how effectively Curefoods executes its expansion plans and manages competitive pressures.

Overall, Curefoods’ Rs 800 crore IPO backed by SEBI approval is a significant milestone not just for the company but also for the Indian cloud kitchen and foodtech industry. It reflects both investor interest and the growth potential of digitally-driven food service models, even as challenges around profitability and competition remain. The coming months will reveal how well Curefoods leverages this capital infusion for market leadership and sustainable business growth.

With inputs from agencies

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