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Curefoods is in talks with Dubai’s Landmark Group to acquire the rights to sell Krispy Kreme doughnuts in India ahead of its upcoming funding round, two people with direct knowledge of the matter told YourStory.

The ongoing deal negotiations may also lead to the Landmark Group investing in Curefoods’ ongoing $40 million funding round, the people said, requesting anonymity as the discussions are private. Curefoods’ existing backer Chiratae Ventures has committed around $15 million in the funding round, which will happen at a valuation of $450-500 million, the people added. Besides, Flipkart Co-founder Binny Bansal, who is also an existing investor in the company, is expected to participate in the round, according to the people.

The deal discussions are still in the early stages and some contours could change. Curefoods declined to comment. Landmark Group and Chiratae Ventures did not immediately respond to queries sent by YourStory.

The Indian operations of Krispy Kreme, an 87-year-old US-based brand known for its coffee and doughnuts, are currently handled by Citymax Hotels India Pvt Ltd, a subsidiary of the Landmark Group. Landmark Group, founded in 1973, runs retail brands in the Middle East. Krispy Kreme currently has stores in Chennai, Bengaluru, and Hyderabad in India.

“Krispy Kreme has stores in some very good locations that are not very easily available at the right price today in India and plus it’s a brand that needs no introduction,” said one of the two people quoted above.

“Curefoods is expanding beyond just Cloud Kitchen, and Krispy Kreme would fit perfectly. It also adds to its portfolio of desserts, which currently has just CakeZone,” the person added.

Curefoods’ negotiations to acquire Krispy Kreme coincide with the company’s rapid expansion into a comprehensive house of brands, capitalising on the swift growth of the eating-out segment following the pandemic. Curefoods was a pure cloud kitchen platform before evolving into an omnichannel business.

“There’s growth in omnichannel today and that’s well established. When they started, there were pandemic restrictions on restaurants, but now it isn’t the case anymore. In fact, the going-out segment, in general, is on the rise,” said the second person quoted above.

“They are looking to give a better experience in some of the newer stores they are opening. And going forward, they will look to do the same. The aim is to build a ‘house of brands,’ which has online and offline presence, and have as many types of cuisines as possible,” the person added.

Since its founding in 2020 by Ankit Nagori, a former top executive at Flipkart and co-founder of Cult.fit, Curefoods has raised over $120 million in equity funding from investors such as Accel, Sixteenth Street Capital, and Iron Pillar. The company operates several brands, including Eatfit, Chaat Street, Millet Express, Olio Pizza, Sharief Bhai, and Nomad Pizza. It reports an annual revenue run rate of approximately Rs 100 crore across five of its brands.