Curefoods Files for IPO Amidst Revenue Growth

Cloud kitchen brand Curefoods has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). This action follows the company’s financial performance in FY25, where it reported revenues of Rs 746 crore and a loss of Rs 170 crore, as detailed in its balance sheet.

The operating revenue of Curefoods saw a rise of 28%, growing from Rs 585 crore in FY24 to Rs 746 crore in FY25. However, the losses remained unchanged in the last fiscal year, as presented in the financial statement within the DRHP.

Curefoods’ Diverse Offerings and Revenue Breakdown

Curefoods is engaged in a multi-brand cloud kitchen operation, offering a range of products, including Indian meals, pizzas, desserts, and health-oriented food. In FY25, the desserts segment led the revenue, generating Rs 196 crore, closely followed by pizzas at Rs 183 crore, Indian meals at Rs 178 crore, and healthy meals at Rs 176 crore. While desserts and pizzas experienced growth rates of 18% and 95% YoY, respectively, the healthy segment witnessed a decline of 13%.

Additionally, the Bengaluru-based company accrued Rs 29 crore from interest on financial assets, elevating its total income to Rs 775 crore in FY25.

Expense Analysis for Curefoods

On the expense front, the cost of materials constituted the largest portion, amounting to Rs 273 crore, followed by employee benefits at Rs 180 crore and commissions at Rs 137 crore. Advertising expenses surged significantly by over 64%, reaching Rs 87 crore. Overall, Curefoods’ total expenditure for FY25 was Rs 944 crore, marking a 17% increase from Rs 807 crore in FY24.

Despite the revenue increase, the company’s loss remained consistent at Rs 170 crore in FY25, down slightly from Rs 173 crore in FY24. Its Return on Capital Employed (ROCE) and EBITDA margin were recorded at -19% and -7.5%, respectively. On a unit basis, Curefoods incurred a cost of Rs 1.27 for every rupee of operating revenue in FY25.

Current Assets and Leadership Compensation

As of March 2025, led by Ankit Nagori, the company had current assets amounting to Rs 339 crore, which included Rs 80 crore in cash and bank balances. The founder Nagori’s fixed annual remuneration stands at Rs 3 crore, along with a variable bonus potential of up to 20% of his salary.

Operational Performance and Brand Highlights

Curefoods’ operational performance saw improvement in FY25, with average daily sales increasing to Rs 2 crore from Rs 1.5 crore in FY24, driven by robust consumer demand for its brands. Among its ten key brands, Sharief Bhai, EatFit, and CakeZone contributed significantly to revenues, with Rs 148 crore, Rs 145 crore, and Rs 102 crore, respectively. Furthermore, the company expanded its revenue channels by launching Krispy Kreme operations in South, West, and North India, generating Rs 15 crore in FY25 after acquiring the franchise rights.

Challenges Ahead for Curefoods

The improving numbers suggest a maturation of the business, which supports the decision to pursue a public listing. Nevertheless, challenges linger, particularly relating to the performance of the ‘Healthy Foods’ segment and the Krispy Kreme franchise, which has not yet fully succeeded in the Indian market. Previous attempts by other international dessert brands, such as Dunkin Donuts, have faced obstacles despite support from local entities, underscoring the difficulties encountered in capturing local consumer interest.

As Curefoods continues to adopt a multi-brand strategy, its profitability potential remains untested, and the first half of FY26 could serve as a pivotal period to assess whether the company has identified a viable route to profitability.