Curefoods gets SEBI's permission for ₹800cr IPO in India
What's the story
Bengaluru-based cloud kitchen operator Curefoods has received approval from the Securities and Exchange Board of India (SEBI) for its ₹800 crore initial public offering (IPO). The IPO will include a fresh issue and an offer-for-sale (OFS) of up to 4.85 crore shares. This move provides early investors such as Iron Pillar PCC, Crimson Winter, Accel, Chiratae Ventures, and Curefit Healthcare an opportunity to exit partially or fully.
Share allocation
Major sellers in Curefoods's upcoming IPO
Iron Pillar is set to offload 1.91 crore shares, while Crimson Winter will sell 97.6 lakh shares. Accel and Chiratae will sell 45.7 lakh and 36.6 lakh shares respectively. Curefit Healthcare plans to exit with a smaller tranche of 12.8 lakh shares in this public issue of Curefoods's equity stock ownerships.
Fund allocation
Use of proceeds from the IPO
Curefoods plans to use ₹152.5 crore from the IPO proceeds to establish new cloud kitchens and expand infrastructure. Another ₹126.9 crore will be used for repayment or prepayment of borrowings. The company also intends to invest ₹92 crore in its wholly-owned subsidiary Fan Hospitality, which handles kitchen infrastructure and operations, along with setting aside ₹40 crore for lease deposits, and ₹14 crore for marketing and brand-building activities.
Financial overview
Financial performance and employee churn
Curefoods has nearly doubled its revenue in two years, from ₹382 crore in FY23 to ₹746 crore in FY25. However, the company continues to post losses with a net loss of ₹170 crore in FY25, roughly flat year-on-year. EBITDA losses have narrowed sharply from ₹276 crore to ₹58 crore over the same period. Employee churn remains high at 111.73% in FY25 after crossing 120% for two consecutive years prior.