Cloud kitchen operator Curefoods' investors rush for exits ahead of IPO

Curefoods files for ₹800 crore IPO with investor exits led by Iron Pillar and Accel, even as the firm shows revenue growth and plans brand expansion

Several high-profile investors in cloud kitchen operator Curefoods are set to significantly reduce their stakes through the company's upcoming IPO, with Iron Pillar leading the exits by offloading 1.9 crore shares as the firm seeks to raise ₹800 crore.

 

Curefoods has filed draft papers with market regulator Securities and Exchange Board of India (SEBI) for an initial public offering that includes a fresh issue of ₹800 crore and an offer for sale of 4.85 crore shares.

 

Beyond Iron Pillar’s significant divestment, other major investors are also trimming their holdings. Accel India and Crimson Winter will sell 45.75 lakh and 97.6 lakh shares, respectively, while Chiratae Ventures and Global eCommerce will divest 64.5 lakh and 35.24 lakh shares through the public issue.

 

The investor exits come even as co-founder and Chief Executive Officer Ankit Nagori retains confidence in the business, holding the largest individual stake at 27.8 per cent. 3 State Ventures, backed by Flipkart co-founder Binny Bansal, remains the biggest institutional investor with a 17.32 per cent stake and is not participating in the sell-off.

 

The mixed investor sentiment reflects the company’s financial trajectory. While Curefoods reported a robust 27 per cent year-on-year revenue growth to ₹745.7 crore in FY25 from ₹585.1 crore in FY24, it has barely dented its losses, narrowing them only marginally to ₹170 crore in FY25 from ₹172.6 crore in the previous year.

 

The Bengaluru-based firm manages a diverse portfolio of food brands including CakeZone, Sharief Bhai, Olio, EatFit, Frozen Bottle, Rolls on Wheels, Ovenfresh, Nomad, and Millet Express. It recently expanded its offerings by acquiring the exclusive rights to operate Krispy Kreme outlets across India.

 

The company plans to utilise the net proceeds from the IPO—amounting to ₹152.54 crore—primarily for expansion and equipment. This includes ₹126.32 crore for establishing new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens; ₹19.91 crore for expanding select existing cloud kitchens by adding new brands; and ₹6.31 crore towards the purchase of machinery and equipment.

 

The company has observed strong operational metrics—with service locations expanding from 277 in March 2023 to 502 by March 2025, and order volumes growing from 11.38 million in FY23 to 15.82 million in FY24 and to 18.23 million in FY25. However, seasoned investors are choosing to exit rather than hold for potential post-IPO gains. The company’s average order value has also improved from ₹335 to ₹408.

 

As of 31 March 2025, Curefoods had a presence across 502 service locations in more than 70 cities and towns in India. Its offline network comprises five central kitchens, 281 cloud kitchens, 99 kiosks, 122 restaurants, and 13 warehouses, strategically located in high-footfall areas to maximise accessibility.

 

The company’s online reach is driven by strong integration with leading food delivery platforms such as Swiggy Limited and Eternal Limited (formerly Zomato Limited), along with its proprietary website.

 

Notably, advertising and business promotion expenses have been reduced from ₹107 crore to ₹87.4 crore between 2023 and 2025, now standing at 11.75 per cent of revenue—suggesting improved unit economics. 

 

As of 31 March 2025, Curefoods operated 10 key brands—each generating over ₹24 crore in revenue during the fiscal year—with these brands accounting for over 98 per cent of total revenue. The company also made its international debut in 2024 with the launch of Sharief Bhai in the UAE.

 

Curefoods ranks as the fastest-growing food services company by revenue and is the first non-marketplace player in the sector to cross ₹750 crore in annual revenue within five years, according to RedSeer—achievements that make the investor exits all the more intriguing.

 

JM Financial Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited are the book running lead managers to the issue.