Cloud kitchens operator Curefoods files IPO papers; aims to raise Rs 800-cr

Cloud kitchens operator Curefoods India on Sunday filed preliminary papers with markets regulator Sebi seeking its approval to raise funds through an initial public offering (IPO).

The proposed IPO is a combination of fresh issuance of shares worth Rs 800 crore, and an offer-for-sale of 4.85 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).

As part of the OFS, Curefit Healthcare, Iron Pillar PCC, Crimson Winter, Accel India V, Chiratae Ventures India Fund IV, Global eCommerce Consolidation Fund and Alteria Capital Fund will be offloading shares.

The Bengaluru-based Curefoods India, which operates CakeZone and Nomad Pizza, plans to mobilise up to Rs 160 crore in pre-IPO round.

If it completes the pre-IPO placement, then the size of the fresh issue will be reduced accordingly.

Proceeds from the IPO to the tune of Rs 152.54 crore will be allocated towards expansion and equipment, including Rs 126.32 crore for setting up new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens; Rs 19.91 crore for expanding certain existing cloud kitchens through brand additions, and Rs 6.31 crore for purchasing machinery and equipment.

In addition, Rs 126.93 crore will be used for payment of debt, Rs 40 crore for lease payments for the company's current properties in India and Rs 14 crore on sales and marketing efforts.

Also, the company plans to invest Rs 91.96 crore in its subsidiary, Fan Hospitality Services, another Rs 11.35 crore will be invested in Cakezone Foodtechs and Rs 81.15 crore will be used for acquiring further shareholding in three subsidiaries -- Millet Express Foods, Munchbox Frozen Foods and Yum Plum.

A portion of the proceeds will also be earmarked for funding future acquisitions and strategic initiatives, along with general corporate purposes.

Curefoods India is an internet-driven multi-brand food services company offering comprehensive cuisines. Its multi-channel approach includes providing food offerings to customers under its brands through delivery and non-delivery channels, comprising cloud kitchens, kiosks, and restaurants.

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