Curefoods raises Rs 300 Cr led by Binny Bansal’s Three State Ventures

Cloud kitchen brand Curefoods has raised Rs 300 crore ($36.5 million) in an equity and debt round led by Binny Bansal’s fund Three State Ventures. Three State Capital invested Rs 240 crore while the rest came from IronPillar, Chiratae, ASK Finance and Winter Capital.

Curefoods will use this fundraise to expand its geographical reach and diversify its brands into offline formats, from the current online-only cloud kitchen presence, the company said in a statement. Previously, the firm had raised over $62 million from Iron Pillar, Chiratae, Sixteenth Street Capital, Accel, Binny Bansal, Alteria Capital, BlackSoil Capital, and others in January 2022.

As per Fintrackr’s data, it has raised nearly $120 million to date.

".. Our investors understand our brand vision very well and are aligned to our long-term goal of creating multiple 500 crore brands," said Ankit Nagori, founder of Curefoods.

Started in 2020, Curefoods operates brands like EatFit, Yumlane, Aligarh House Biryani, Masalabox and CakeZone. It has over 100 kitchens in over 200 locations across 15 cities serviced by a backend operation of over 7 food factories, and 150 multi-brand cloud kitchens. This year it intends to expand in tier I and tier II cities.

Curefoods primarily competes with Coatue-backed Rebel Foods and Box8 whereas a host of independent brands such as Biryani Blues, Biryani by Kilo are its indirect competitors.

Curefoods recorded Rs 89.1 crore in revenue from operations during FY22. As per the company’s regulatory filings, it spent almost 1.8X of its operating revenue and its losses stood at Rs 71.25 crore in the fiscal year.

For FY23, Curefoods claims that it grew over 300% year-on-year and claimed to cross 1.1 million orders per month in Dec 2022 with an annual recurring revenue of Rs 550 crore. By the end of FY23, it targets to achieve ARR of Rs 1,000 crore and plans to open 50 more locations with an aim of managing 2 million orders a month.