Cloud Kitchen Giant Curefoods Set to Hit Dalal Street: SEBI Approves Rs 800 Crore IPO

The Indian cloud kitchen revolution is about to get a major boost as Curefoods, the company behind brands like EatFit, CakeZone, and Krispy Kreme, gears up for its debut on Dalal Street. The Securities and Exchange Board of India (SEBI) has reportedly approved Curefoods’ Rs 800 crore initial public offering (IPO), marking a significant milestone for the Bengaluru-based startup.

With the IPO, early investors have the chance to exit partially or fully, while founder Ankit Nagori plans to retain his entire stake. This move comes as Curefoods continues to expand its cloud kitchen network and gain traction in the booming food-tech space.

IPO Structure and Investor Exit

The Rs 800 crore IPO will include both a fresh issue and an offer-for-sale (OFS) of up to 4.85 crore shares. The OFS allows early-stage investors to partially or fully exit their holdings. Key stakeholders reducing their stakes include Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare, which was co-founded by Mukesh Bansal and Ankit Nagori.

Among these, Iron Pillar is expected to be the largest seller, offloading 1.91 crore shares. Crimson Winter follows with 97.6 lakh shares, Accel with 45.7 lakh, Chiratae with 36.6 lakh, and Curefit with 12.8 lakh shares. Based on weighted average acquisition prices, Iron Pillar’s exit value is estimated to be 2.6 times higher than that of Accel and Chiratae.

Meanwhile, founder Ankit Nagori will retain his entire holding, signaling confidence in the company’s growth prospects.

Plans for the Raised Capital

Curefoods intends to use the fresh capital strategically to strengthen its operations and infrastructure. Here’s how the Rs 800 crore is expected to be allocated:

• Rs 152.5 crore for expanding the cloud kitchen network and infrastructure
• Rs 126.9 crore for repaying borrowings
• Rs 92 crore for Fan Hospitality, the subsidiary managing kitchen operations
• Rs 40 crore for lease deposits
• Rs 14 crore for marketing and brand-building

Additionally, the company may raise Rs 160 crore through a pre-IPO placement, which could reduce the size of the fresh issue.

Rapid Revenue Growth Amid Losses

Curefoods has seen its revenue nearly double over the past two years, jumping from Rs 382 crore in FY23 to Rs 746 crore in FY25. However, the company continues to post losses, with a net loss of Rs 170 crore in FY25 — broadly unchanged from the previous year.

Despite this, EBITDA losses have narrowed significantly, falling from Rs 276 crore to Rs 58 crore over the same period, highlighting improving operational efficiency.

Challenges Ahead: Cash Burn and Employee Churn

While margins are improving, Curefoods still faces challenges. For every Rs 1 earned, the company spends Rs 1.27 — a cash burn that indicates the aggressive pace of its expansion.

Employee attrition also remains high. Curefoods recorded an attrition rate of 111.7% in FY25, following two years with rates above 120%. Retaining talent and managing operational efficiency will be key challenges as the company scales up.

Cloud Kitchen Market in India

The cloud kitchen sector in India has grown rapidly over the past few years, driven by rising demand for online food delivery, increased smartphone penetration, and changing consumer habits. Startups like Curefoods are leveraging technology to streamline operations, optimize delivery, and provide a wide variety of cuisine without the need for physical dine-in spaces.

With SEBI approval for its IPO, Curefoods is now poised to capitalize on this growth and strengthen its market presence.

Investor Sentiment and Market Outlook

Market analysts see Curefoods’ IPO as a strong opportunity for investors interested in the food-tech space. The combination of a well-recognized brand portfolio, strong revenue growth, and strategic expansion plans makes the IPO attractive despite ongoing losses.

The success of the IPO will likely depend on market sentiment, the company’s ability to improve profitability, and how effectively it can manage cash burn and employee turnover.

Curefoods’ upcoming IPO marks a significant moment for the Indian cloud kitchen ecosystem. With SEBI approval in hand, the company is ready to raise Rs 800 crore to expand its operations, repay debts, and strengthen its infrastructure. While challenges remain — particularly around cash burn and talent retention — the company’s rapid revenue growth and market presence make it one to watch.

For investors, the Curefoods IPO offers a unique opportunity to participate in one of India’s fastest-growing food-tech startups as it takes a major step onto Dalal Street.