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

As part of the OFS, Iron Pillar will sell 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 issue 64.5 lakh and 35.24 lakh shares, respectively, through the public offering.

Key Highlights

• Curefoods files DRHP to raise ₹800 crore via fresh issue, alongside 4.85 million-share OFS.
• IPO proceeds will fuel cloud kitchen expansion, Krispy Kreme setup, debt repayment, leases, and general corporate purposes. 

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

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

Curefoods is a cloud kitchen company with brands including Eatfit, Millet Express, Sharif Bhai, Rolls on Wheels, Olio, Nomad, CakeZone, Frozen Bottle, Krispy Kreme, and Ovenfresh, among others. The pan-India rights to Krispy Kreme were recently purchased by a foodtech company based in Bengaluru.

The business intends to list on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE). According to DRHP, JM Financial, IIFL Capital, Nuvama, and KFintech are the book-running lead managers for the issue.

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The DRHP states that the new issue's proceeds will be utilized for marketing campaigns, debt repayment, lease obligations, cloud kitchen expansion, and other general business needs.

From Rs 585.1 crore in FY24 to Rs 745.7 crore in FY25, Curefoods' revenue grew 27% annually. The company's losses decreased from Rs 172.6 crore in FY17 to Rs 170 crore in FY24.

The IPO route is a logical extension of Curefoods' current strategy. A soaring stock market, like a hot meal best consumed quickly, provides a wealth of opportunities for startups to raise growth capital while also providing investors with exits. As Curefoods looks to cash in, it's worth considering how markets have treated other similar companies. It has typically rewarded consistency and margins very well (Jubilant, Varun beverages), while penalizing companies that have failed the test. With profits elusive for Curefoods, it remains to be seen whether the company can achieve the valuation it seeks.