Curefoods Secures Funding of Rs 37 Crore from Landmark Group
Curefoods, a cloud kitchen startup, has successfully raised Rs 37 crore (approximately $4.4 million) from the Landmark Group. This funding comes just a month after Curefoods acquired the South and West India operations of Krispy Kreme from the same entity.
The board at Curefoods has approved a special resolution to issue 3,458 compulsory convertible preference shares at a price of Rs 1,07,526 each, in order to raise the aforementioned amount, as detailed in its regulatory filing obtained from the Registrar of Companies (RoC).
Reports indicate that the Landmark Group intends to invest an undisclosed sum in this round of fundraising, which is part of a larger $40 million fundraising initiative. Following this latest investment, Landmark Group will hold a 0.96% stake in Curefoods, a percentage that may increase with further investments. Startup Superb estimates the post-allotment valuation of the firm at around $460 million.
In addition to the funding raised, Curefoods has expanded its Employee Stock Ownership Plan (ESOP) by adding 10,613 employee stock options valued at Rs 114 crore or $13.5 million. According to the estimation provided by Startup Superb, the total valuation of Curefoods’ ESOP plan now stands at approximately Rs 213 crore or $25 million, comprising 19,842 employee stock options.
Founded in 2020, Curefoods operates several brands including EatFit, Yumlane, Aligarh House Biryani, Masalabox, and CakeZone. With over 100 kitchens across more than 200 locations in 15 cities, the company is supported by a backend infrastructure featuring over 7 food factories and 150 multi-brand cloud kitchens. In 2023, Curefoods also added two new brands to its portfolio – YumLane Pizza and Millet Express.
The cloud kitchen startup has experienced significant growth, achieving a 53% year-on-year revenue increase to Rs 585 crore in FY24, up from Rs 382 crore in FY23. The company noted in its annual report that a substantial reduction in advertising expenses contributed to a 50% reduction in losses, bringing them down to Rs 172.6 crore during the same financial year.
