Curefoods Taps Tier-2 Cities as It Files ₹800 Crore IPO Draft

New Delhi, Sept 1, 2025: Bengaluru-headquartered multi-brand food services company Curefoods, which owns brands such as EatFit, CakeZone, and Krispy Kreme, has placed Tier-2 and smaller cities at the center of its IPO growth strategy, as per its recent draft red herring prospectus filed with SEBI.

Tier-2 Cities Fuel Expansion with Rising Incomes and Digital Payments

Curefoods identifies unpenetrated markets in Tier-2 and lower markets, where growing disposable incomes, burgeoning gig economies, and heightened digital payment adoption are changing consumer dynamics towards branded, premium eating out. The company wishes to strengthen its offline presence by deploying its scalable supply chain and technology-driven infrastructure to penetrate deeper into these markets.

₹746 Crore FY25 Revenue with 27% YoY Growth Despite ₹170 Crore Loss

The firm reported operating revenues of ₹746 crore in FY25, a healthy 27% year-on-year growth, led by its multi-brand, multi-format strategy in 502 points in more than 70 towns and cities. While reporting strong top-line growth, Curefoods continues to be loss-making, with FY25 losses sequentially narrowing to ₹170 crore.

₹800 Crore IPO Mix Targets Expansion, Debt Repayment, and Subsidiary Funding

Curefoods’ IPO proposal is in the form of a mix of a fresh issue of ₹800 crore and an offer-for-sale of 4.85 crore shares. The firm will use capital in four main areas:

• ₹152.5 crore to scale up cloud kitchens, kiosks, restaurants, and Krispy Kreme Theatres;
• ₹126.9 crore towards repayment or prepayment of debt;
• ₹92 crore to its subsidiary Fan Hospitality;

Smaller marketing and security deposit allocations, with flexibility maintained through a possible ₹160 crore pre-IPO placement.

Multi-Brand Portfolio from EatFit to Krispy Kreme Boosts Market Reach

Curefoods’ multi-brand strategy includes healthy food (EatFit, Millet Express), sweets (CakeZone, Frozen Bottle), pizzas (Olio, Nomad Pizza), Indian food (Sharief Bhai Biryani, Rolls on Wheels), and an international partnership (Krispy Kreme). This is supported by a chain of kiosks, full-service restaurants, and technology-enabled operations, such as AI-based demand planning and real-time order tracking to ensure consistency and efficiency.

Capital-Heavy Model and Reliance on Aggregators Pose Profitability Risks

Although top-line growth is robust, the company continues to be capital-dosing and externally funded. With costs of ₹944 crore, Curefoods still incurs ₹1.27 of loss for each ₹1 of earnings, reflecting cashflow sustainability risks and retention issues. There is also a high reliance on aggregator platforms, which can potentially restrict margin management in the long run.

Curefoods’ IPO marks the scalable growth phase post-metros but investors will keenly observe its journey to profitability, efficiency of capital deployment, and de-risking from market concentration.

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