Curefoods Halts IPO Amid Market Turmoil & Valuation Woes
Abandoned office space in an Indian city, symbolizing a halted IPO.
Key Highlights
Cloud kitchen startup Curefoods postpones IPO plans due to Indian market volatility and investor concerns over its ₹4,000 Cr valuation. SEBI approval received earlier.
Cloud kitchen startup Curefoods has decided to put its initial public offering () plans on hold, citing significant turmoil in the Indian equities market and concerns regarding its potential valuation. The move follows a similar decision by digital payments giant PhonePe to delay its own public listing.
Curefoods, which owns brands like Olio’s Pizza, had received approval from the Securities and Board of India (SEBI) to proceed with its public listing in October of the previous year. However, recent roadshows revealed a misalignment between the company’s target valuation and investor sentiment.
Valuation Discrepancy and Market Conditions
Sources cited by ET indicated that mutual funds were not in agreement with the ₹4,000 Cr (approximately $419 Mn) valuation sought by Curefoods, especially given the prevailing market conditions. This discrepancy proved to be a critical factor in the decision to postpone the IPO.
As per its Draft Red Herring Prospectus (DRHP), the proposed IPO was structured to include a fresh issue of ₹800 Cr alongside an offer for sale () of up to 4.85 Cr equity shares. Key early investors, including Accel, Chiratae Ventures, Nordstar Partners, Iron Pillar, Alteria Capital, and Curefit Healthcare, were slated to participate in the OFS.
“In a market like this, especially for loss-making companies, it is hard to get a good premium, and they were seeking a ₹4,000 Cr valuation… 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,” a person close to the discussions was quoted as saying, highlighting the company’s strategic decision.
Financials and Expansion Plans
The capital raised from the IPO was primarily earmarked for expanding Curefoods’ extensive cloud kitchen network. Plans included adding over 66 new kitchens to its existing portfolio, which encompasses popular brands such as Olio’s Pizza and Krispy Kreme. An allocation of ₹152 Cr had been designated for this expansion.
Investor apprehension was further fueled by Curefoods’ financial performance, particularly its losses. The company was set to be the first cloud kitchen platform to attempt a public listing, a factor that intensified scrutiny. Rival cloud kitchen operator Rebel Foods is also reported to be considering an IPO, though no recent updates have emerged regarding its plans.
Financially, Curefoods reported a marginal narrowing of its net loss to ₹172 Cr in FY25, down from ₹170 Cr in FY24. Concurrently, total revenue experienced a 27% increase, climbing to ₹775.4 Cr in FY25 from ₹635 Cr in the preceding fiscal year.
Company Overview and Funding
Founded in 2020 by former Flipkart executive Ankit Nagori, Curefoods originated as a spin-off from fitness startup Cult.fit. Initially operating under the single brand Eat.fit, the company has since evolved into a comprehensive house of brands, largely through an aggressive acquisition strategy that fueled its expansion.
At the time of filing its DRHP, Curefoods boasted an operational footprint across 502 service locations in more than 70 cities throughout India. This network comprised five central kitchens, 281 cloud kitchens, 99 kiosks, 122 restaurants, and 13 warehouses. The company manages over 20 distinct brands, including Rolls On Wheels, Cake Zone, Canteen Central, and Nomad Pizza.
To date, Curefoods has successfully raised $150 Mn from investors such as Accel, Iron Pillar, and 3State Ventures. This funding includes a significant pre-IPO round of ₹160 Cr secured in September of the previous year.