Cloud kitchen startup Curefoods has raised Rs 300 crore (~$36 million) in a funding round led by Flipkart co-founder Binny Bansal’s venture capital firm Three State Capital. IronPillar, Chiratae Ventures, ASK Finance and Winter Capital also participated in the round.
The fundraise is a mix of primary and secondary equity and debt with Three State Capital contributing Rs 240 crore (~$29 million).
Last year, Curefoods had raised about Rs 800 crore ($97 million) from Iron Pillar, Chiratae Ventures, Sixteenth Street Capital, Accel Partners, Binny Bansal, Alteria Capital, BlackSoil Capital, Winter Capital, and Trifecta Capital. In total, it has raised more than Rs 950 crore ($115 million) in funding so far.
The Ankit Nagori-led firm hopes to use the new funds to diversify its brands into offline formats and expand its presence in Tier I and II cities in the northern and western parts of India.
“This funding will allow us to reach new customers and markets while also targeting our offline model expansion,” said Ankit Nagori, Founder of Curefoods.
Founded in 2020, Curefoods runs a house of brands, including EatFit, CakeZone, Nomad Pizza, and Frozen Bottle. The cloud kitchen operator has over 150 kitchens that cater to over 10 cuisines across 15 cities in India.
The company logged a revenue of Rs 88.4 crore in FY22, its first year of operations, with total expenses amounting to Rs 165 crore. Its business grew 300% year-on-year in FY23, according to the company.
In December last year, Curefoods crossed 1.1 million orders per month, resulting in an annual recurring revenue of Rs 550 crore, the company said in a statement.
Curefoods’s fundraise points to a silver lining in the cloud kitchen industry, which has been witnessing tough times of late.
YourStory reported in January that Uber co-founder Travis Kalanick’s cloud kitchen business in India was shuttered after it failed to generate sustainable revenue. Mukunda Foods closed its cloud kitchen vertical Nucleus Kitchens the following month.
Last month, Swiggy sold its cloud kitchen business, Swiggy Access, to Bengaluru-based [email protected] as part of an effort to reign in costs by scaling down unprofitable businesses.
