Curefoods files DRHP to raise Rs 800 Cr in fresh issue, founder Ankit Nagori to skip OFS

Cloud kitchen brand Curefoods has filed its DRHP with the Securities and Exchange Board of India (SEBI) for an IPO comprising a fresh issue of Rs 800 crore and an OFS of 4.85 crore shares, according to its filing.

As part of the OFS, Iron Pillar will offload 1.9 crore shares, while Crimson Winter and Accel India plan to sell 97.6 lakh and 45.75 lakh shares, respectively. Chiratae Ventures and Global eCommerce will divest 64.5 lakh and 35.24 lakh shares through the public issue.

According to the prospectus, Binny Bansal’s 3 State Ventures is the largest external shareholder in Curefoods with a 17.32% stake, followed by Iron Pillar (13.53%), Accel India (7.17%), Chiratae Ventures (8.23%), and Crimson Winter (4.08%). The company’s co-founder and CEO, Ankit Nagori, retains a 27.8% stake, making him the single largest individual shareholder.

According to startup data intelligence platform TheKredible, Curefoods has raised $125 million across funding rounds from the aforementioned investors.

Curefoods is a cloud kitchen firm having brands like Eatfit, Millet Express, Sharif Bhai, Rolls on Wheels, Olio, Nomad, CakeZone, Frozen Bottle, Krispy Kreme, and Ovenfresh, among others. The Bengaluru-based foodtech firm recently acquired pan-India rights for Krispy Kreme.

The company aims to list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). As per DRHP, JM Financial, IIFL Capital, Nuvama, and KFintech are the book-running lead managers for the issue.

According to the DRHP, proceeds from the fresh issue will be utilised for the expansion of cloud kitchens, debt repayment, lease obligations, marketing initiatives, and other general corporate purposes.

Financially, Curefoods reported a 27% year-on-year growth in revenue to Rs 745.7 crore in FY25 from Rs 585.1 crore in FY24. The company managed to narrow its losses marginally to Rs 170 crore in FY24 compared to Rs 172.6 crore in the previous year.

The IPO route is a natural outcome for the direction Curefoods has embarked on. Like a hot meal best consumed soon, a surging stock market offers a huge opportunity for startups to raise growth capital, besides providing exits to investors. As Curefoods looks to cash in, it is instructive how markets have treated other similar firms. It has usually rewarded consistency and margins very well (Jubilant, Varun beverages), while pulling back on firms that have failed the test. With profits elusive for Curefoods, it remains to be seen if the firm can pull off the kind of valuation it wants.