Synopsis
Cloud kitchen platform Curefoods has postponed its Rs 800 crore IPO plans after Sebi approval, as mutual funds resisted its Rs 4,000 crore valuation. The company, facing market headwinds for loss-making new-age firms, aims to relist next year if market conditions improve. This follows similar deferrals by PhonePe and Flipkart.Listen to this article in summarized format
The company, founded by former Flipkart executive Ankit Nagori, was aiming to raise Rs 800 crore through the public issue at a valuation of about Rs 4,000 crore. However, its roadshows did not go as planned, with mutual funds not agreeing to the valuation Curefoods was seeking, people aware of the matter told ET.
“Curefoods conducted roadshows since the start of the year and held discussions with mutual funds and other institutional investors. In a market like this, especially for loss-making companies, it is hard to get a good premium, and they were seeking a Rs 4,000-crore valuation,” said one of the people quoted above, who is directly aware of the discussions.
“So now, they have decided to hold it, and will attempt to get listed next year, if the markets are better. They don’t immediately need capital infusion,” the person added.
Curefoods declined to comment.
The development makes Curefoods the latest new-age company to defer its listing plans after preparing for the public markets. In March, Walmart-backed PhonePe postponed its $1.3 billion IPO amid volatile market conditions and a valuation gap with mutual fund investors. In May, ET reported that Walmart-owned Flipkart had indefinitely paused IPO discussions, citing rising volatility, a crowded pipeline of large public issues, and concerns around investor appetite for loss-making internet companies.
Curefoods had filed its draft red herring prospectus in June last year to raise Rs 800 crore in primary capital, along with an offer-for-sale by investors such as Accel, Chiratae Ventures, Nordstar Partners, Iron Pillar, Alteria Capital, and Curefit Healthcare. Sebi approved Curefoods’ draft red herring prospectus (DRHP) during the week ended October 24.
The IPO was expected to provide growth capital for the company’s expansion across cloud kitchens, restaurants, kiosks, and central kitchens. Curefoods had proposed to use Rs 152 crore from the fresh issue for expansion, including for Krispy Kreme, and about Rs 127 crore to repay certain debt.
Ahead of the proposed listing, Curefoods had raised Rs 160 crore from Binny Bansal’s 3State Ventures in a pre-IPO placement at Rs 124 per share, valuing the company at around Rs 4,000 crore. 3State Ventures is Curefoods’ largest institutional backer and held more than 17% before that transaction. Nagori owned over 27% in the company.
Curefoods operates brands such as EatFit, Nomad Pizza, Sharief Bhai Biryani, CakeZone, Frozen Bottle and Krispy Kreme. It runs over 500 kitchens across 70 cities. The company had acquired pan-India rights for Krispy Kreme last year, marking a sharper push beyond its core cloud kitchen network and into offline food services.
For FY25, Curefoods reported operating revenue of Rs 746 crore, up 27% from the previous year. Its loss narrowed marginally to Rs 170 crore from Rs 172 crore. Among its brands, Sharief Bhai Biryani and EatFit were the largest contributors to revenue, followed by Olio and CakeZone.
The IPO pause also comes at a time when public market investors are applying sharper filters to consumer internet and food services companies, especially around profitability, growth rates and pricing. Food delivery companies have also flagged slower category growth over the past few quarters, adding to investor caution around companies dependent on online food ordering and kitchen-led expansion.
“The delay is also due to the poor outlook the cloud kitchen sector holds,” said one of the sources quoted above.
