Curefoods Secures Rs 160 Crore in Pre-IPO Placement

In a significant move, Curefoods has raised Rs 160 crore (approximately $18 million) through a pre-IPO placement with 3State Ventures, the investment branch of Flipkart co-founder Binny Bansal. As detailed in the recent press release, the company has issued 1.28 crore equity shares at a price of Rs 124 each to 3State Ventures.

Investment Details

The Bengaluru-based company submitted its draft red herring prospectus (DRHP) in June with intentions to raise Rs 800 crore via a fresh issue, alongside an offer for sale (OFS) of 4.08 crore shares by early investors such as Iron Pillar, Chiratae Ventures, Crimson Winter, Accel, and Curefit Healthcare, among others. Notably, the founder and CEO Ankit Nagori will abstain from participating in the OFS.

Strategic Use of Proceeds

According to the information provided in the DRHP, the proceeds from this fresh issue will be allocated for expanding Curefoods’ network of cloud kitchens, restaurants, kiosks, and central kitchens. Furthermore, the funds will be used to repay existing debt, invest in its subsidiary Fan Hospitality, and manage working capital along with general corporate expenditures. The leading book-running managers for the issue are JM Financial, IIFL Capital, and Nuvama Wealth Management.

Curefoods’ Business Model

Curefoods operates a diverse multi-brand cloud kitchen business encompassing various categories including Indian meals, pizza, desserts, and health-oriented food options. Some of its notable brands comprise EatFit, CakeZone, Nomad Pizza, Frozen Bottle, Sharief Bhai, and Krispy Kreme. In the fiscal year 2025, the company reported a revenue of Rs 745.8 crore, up from Rs 585.1 crore in FY24, with losses slightly decreasing to Rs 170 crore from Rs 172.6 crore in the prior year.

Growth and Expansion

Supported by notable investors like Binny Bansal, Curefoods has swiftly expanded its reach to over 500 service locations across more than 70 cities. Additionally, it ventured into international markets last year with the introduction of Sharief Bhai in the UAE. This recent pre-IPO funding from 3State Ventures is anticipated to decrease the overall size of the fresh issue in Curefoods’ forthcoming IPO.