Cloud kitchen major Curefoods, the parent company behind popular food brands such as EatFit, CakeZone, and Krispy Kreme, has received approval from the Securities and Exchange Board of India (SEBI) to launch its much-awaited ₹800 crore initial public offering (IPO). The Bengaluru-based company, led by founder and CEO Ankit Nagori, is preparing to enter the public markets amid growing investor interest in India’s food-tech and cloud kitchen ecosystem.
IPO Structure and Key Stakeholder Moves
The IPO will comprise both a fresh issue of shares and an offer-for-sale (OFS) of up to 4.85 crore equity shares, providing an exit opportunity for several early investors. Notably, Ankit Nagori will retain his entire stake and will not sell any shares in the OFS.
Prominent venture capital firms — Iron Pillar, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare (co-founded by Mukesh Bansal and Nagori) — will partially or fully divest their holdings.
According to reports, Iron Pillar PCC will be the largest seller, offloading around 1.91 crore shares, followed by Crimson Winter (97.6 lakh shares), Accel (45.7 lakh shares), Chiratae Ventures (36.6 lakh shares), and Curefit Healthcare (12.8 lakh shares). Based on acquisition prices, Iron Pillar is expected to secure an exit value approximately 2.6 times higher than Accel and Chiratae, positioning it as the top gainer from the offering.
Planned Use of IPO Proceeds
Of the ₹800 crore raised through the primary issue, Curefoods plans to strategically deploy funds across multiple operational priorities:
- ₹152.5 crore – Establishment of new cloud kitchens and strengthening operational infrastructure
- ₹126.9 crore – Repayment or prepayment of existing borrowings
- ₹92 crore – Infusion into Fan Hospitality, its wholly owned subsidiary managing kitchen infrastructure
- ₹40 crore – Lease deposits for new facilities
- ₹14 crore – Marketing and brand-building activities
The company has also retained the option to raise ₹160 crore via a pre-IPO placement, which would proportionally reduce the size of the fresh issue.
Financial Performance Snapshot
Curefoods has delivered robust revenue growth, with topline nearly doubling from ₹382 crore in FY23 to ₹746 crore in FY25. Although the company remains loss-making, its net loss stood at ₹170 crore in FY25, largely flat year-on-year. Importantly, operational metrics have improved — EBITDA losses shrank sharply from ₹276 crore in FY24 to ₹58 crore in FY25, underscoring enhanced efficiency and cost control measures.
Summary:
Curefoods, the operator of EatFit and CakeZone, has received SEBI approval for its ₹800 crore IPO, which includes both a fresh issue and an OFS. Backed by investors like Iron Pillar and Accel, the company plans to use the proceeds for expansion, debt repayment, and brand development. With revenues nearly doubling in two years and EBITDA losses narrowing significantly, Curefoods is poised to strengthen its position as a leading player in India’s fast-evolving cloud kitchen industry.
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