Big Deal! Cloud Kitchen Brand Curefoods raises $37 million
Deal Street! Cloud Kitchen Brand Curefoods raises $37 million
BANGALORE [BENGALURU, INDIA] – We, at Kitchen Control, are back with some Exciting News about big funding activity in the global Cloud Kitchen space, and the News comes from Curefoods [ Eatfit anyone? ]— an exciting Cloud Kitchen brand which has just raised $37 million [INR 300 crore] funding led by Binny Bansal’s Three State Ventures.
>> We, at Kitchen Control, have always maintained that the Cloud Kitchen Business, done the Right Way with Insider Information, can actually turn out to be Super Lucrative…and the Curefoods deal proves us right once again!
>> Why are we, at Kitchen Control, excited about this Curefoods super fund-raising, as much as Curefoods’ CEO is?
Simply because it confirms what we have saying about the Exciting Future Trends for the Cloud Kitchen Industry, which is the niche of Curefoods — the Cloud Kitchen Market is expected to grow at a whopping 15.5%-17.5% CAGR between 2024-2028.
And the Cloud Kitchen Market in India might achieve a market value of $2.5 billion by FY28.
What is the Curefoods Deal All About?
>> Aiming at big expansion plans, including offline foray, Curefoods, the exciting cloud kitchen brand, has raised Rs 300 crore (about $37 million) in a new funding round led by Flipkart founder Binny Bansal’s fund Three State Ventures, IronPillar and others.
>> Curefoods said the freshly raised funds would be used to diversify its brands into offline formats from online-only cloud kitchen presence…Here are the Funding Details:
>> The funding consisted of primary and secondary equity and debt, with Three State Ventures leading the round with a check of Rs 240 crore [$29 million], Curefoods said in a statement on April 6, 2023. The company also aims to expand in tier 1 and 2 cities in the north and the west of India, it said.
>> Besides IronPillar and Three State Ventures, Chiratae Ventures, ASK Finance and Winter Capital also participated in the round.
>> The company has set a target of Rs 1,000 crore [$122 million] annualised revenue run rate (ARR) by the end of 2023, it said. During the period, it also plans to open at 50 more locations with an aim of managing 2 million orders a month.
>> Curefoods said that in FY23, it saw year-on-year growth of over 300%. In FY22, it reported operating revenue of Rs 215.7 crore. A 300% increase suggests that revenue topped Rs 800 crore in FY23.
>> Curefoods continues to focus on profitability and achieving growth and presence around India in the coming years, the compay said.
Why is Curefoods CEO So Excited About This Funding Deal?
Ankit Nagori, Founder – Curefoods believes that the food delivery market will quadruple over the next five years; the industry is expected to reach a whopping 8-9 million orders a day from the current 3 million figure as the market continues to become more organized
We are excited about the future of consumer brands and look forward to innovating and leading brands in this space for India, while delivering authentic and nutritious food to many Indians, according to the Indian taste palette,” Curefoods founder Ankit Nagori said.
“This funding will allow us to reach new customers and markets while also targeting our offline model expansion,” Nagori added.
>> Curefoods said its gourmet pizza offer Nomad Pizza and the biryani brand Sharief Bhai are the fastest-growing brands, growing at over 50% quarter-on-quarter. In December 2022,
>> Curefoods crossed 1.1 million orders a month, resulting in annual recurring revenue of Rs 550 crore, it said.
Curefoods Sets Ambitious Target
>> That’s correct! Curefoods, the Cloud Kitchen operator, expects to be profitable by June 2023. It has set an ambitious target of managing 75,000 orders a day by end of 2023!
>> Nagori believes that the food delivery market will quadruple over the next five years; the industry is expected to reach a whopping 8-9 million orders a day from the current 3 million figure as the market continues to become more organized, and…
…HOLD YOUR BREATHE! – Nagori expects the business of Curefoods to continue to grow at about 75% compound annual growth rate (CAGR) for the next 3 years!
>> According to Ankit Nagori, the CEO, Curefoods expects to turn profitable and achieve an annual run rate (ARR) of Rs 800 crore by June 2023, from the brand’s currently growing ARR of Rs 550 crore.
>> In the past, Nagori has said what we, at Kitchen Control, firmly believe about the Cloud Kitchen Business—that done in the Right Manner, it can be a Super Profitable Business.
>> From Curefoods portfolio of online brands, Eatfit manages over 4.5 lakh orders a month and Cakezone manages 2.5 lakh orders a month. Nagori expects these online-only brands to become very large ones and the company hopes to grow 4-5 times in the next 5 years.
What is the History of Curefoods?
>> Founded in 2016 by Nagori, a former Flipkart executive, the mission of the Bengaluru-based Curefoods is “to make honest food that customers love”.
>> The Curefoods website says: “By incubating food brands and operating state-of-the-art cloud kitchens, we want to democratize the access to good food in a sustainable manner.”
>> It operates state-of-the-art, large commercial kitchens with the cooking and packaging tech to churn out over 100,000 meals/ day —coverage of 75% of India’s online food market.
>> In June 2022, Curefoods closed its Series C round of $50 million from a mix of new and existing investors led by Winter Capital. In early 2022, the startup was valued in the range of $250-$400 million>> .
Source: Curefoods
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