Curefoods posts Rs 746 Cr revenue in FY25, dessert-led income grows 95%

Cloud kitchen brand Curefoods has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The move follows the company’s FY25 financial performance, where it reported a revenue of Rs 746 crore and a loss of Rs 170 crore, according to its balance sheet.

While Curefoods operating revenue increased by 28% to Rs 746 crore in FY25 from Rs 585 crore in FY24, its losses remained flat in the last fiscal year, according to its financial statement given in the DRHP.

Curefoods operates a multi-brand cloud kitchen business across categories like Indian meals, pizza, desserts, and health-focused food. In FY25, desserts led revenue with Rs 196 crore, followed by pizza (Rs 183 crore), Indian meals (Rs 178 crore), and healthy meals (Rs 176 crore). While desserts and pizza grew 18% and 95% YoY, respectively, the healthy segment declined by 13%.

The Bengaluru-based company added Rs 29 crore from interest on financial assets which pushed its total income to Rs 775 crore in FY25.

On the expense side, cost of materials accounted for the largest share at Rs 273 crore, followed by employee benefit expenses at Rs 180 crore and commissions at Rs 137 crore. Advertising costs jumped significantly by over 64% to Rs 87 crore. Overall, the company’s total expenditure stood at Rs 944 crore in FY25, rising by 17% from Rs 807 crore in FY24.

Despite the revenue growth, Curefoods’ loss remained flat at Rs 170 crore in FY25 from Rs 173 crore in FY24. Its ROCE and EBITDA margin stood at -19% and -7.5%, respectively. On a unit level, the company spent Rs 1.27 to earn a rupee of operating revenue in FY25.

As of March 2025, the Ankit Nagori-led company had current assets worth Rs 339 crore in FY25, including Rs 80 crore in cash and bank balances. Curefoods’ founder Nagori is entitled to an annual fixed remuneration of Rs 3 crore (inclusive of perquisites and retirement benefits) and an annual variable bonus of up to 20% of his remuneration.

Curefoods’ operational performance improved in FY25, with average daily sales rising to Rs 2 crore from Rs 1.5 crore in FY24, amid strong consumer demand across its brands. Among its 10 key brands, Sharief Bhai, EatFit, and CakeZone led revenue with Rs 148 crore, Rs 145 crore, and Rs 102 crore, respectively. The company also added new revenue streams through the launch of Krispy Kreme operations in South, West, and North India, with Rs 15 crore in revenue in FY25 after acquiring the franchise rights.

The improving numbers certainly indicate a level of maturity for the business, prompting the move to go public as well. However, risks remain, particularly in the performance of the ‘Healthy Foods’ segment and now, the Krispy Kreme franchise, which, frankly, has not quite delivered in India, and continues to face a tough challenge to crack the local market. 

Dunkin Donuts, another foreign dessert brand that entered with a splash, never quite took off despite the muscle of the Jubilant group, and has been in exit mode for some time. Thus, while picking up a global QSR brand name at this scale of the business serves to send a signal to investors on growth ambitions, making it work has been anything but easy. Curefoods and its multi brand approach remains to be tested, especially with profits still distant, and H1 of FY 26 will probably be a good time to evaluate if the firm has discovered a path to profitability.