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IPO Delayed Amid Shifting Strategy
Curefoods has postponed its IPO plans due to a volatile market, choosing instead to focus on its long-term strategy. CEO Ankit Nagori said the company is pivoting to premium tastes popular with Gen Z consumers and exploring new food categories. This aims to build a stronger, more diverse brand portfolio. Curefoods targets tripling its revenue in five years. This expansion comes as the company still faces profitability issues and relies heavily on delivery apps.
Focusing on Premium Brands and Gen Z
Curefoods is shifting its brand strategy to appeal to urban Gen Z consumers, whom CEO Ankit Nagori calls 'premium by default.' This demographic is driving demand for items like Western desserts, artisanal coffee, and healthier options such as high-protein pizzas. The company is testing global food trends while aiming for accessible prices. Curefoods manages brands like Eatfit and Sharief Bhai, plus new ventures like PHAT, a burger and fried chicken brand that quickly hit ₹1 crore in monthly revenue. Acquiring pan-India rights for Krispy Kreme and planning 250 outlets shows a significant focus on desserts and a mix of cloud kitchens and physical stores. The goal is a more resilient business, less dependent on any one brand's success.
Revenue Climbs, But Losses Persist
Curefoods reported ₹746 crore in operating revenue for FY25, up 28% from ₹585 crore in FY24. Despite revenue growth, net losses were largely flat at ₹170 crore in FY25. The company has not yet shown a clear path to net profitability. Its unit economics show it spends ₹1.27 to earn ₹1 of operating revenue. This cash burn, common in fast-growing food tech, shows how capital-intensive its expansion is. A pre-IPO placement in September 2025 valued the company at about ₹4,000 crore ($450 million), up from earlier rounds. The company aimed to raise ₹800 crore from its IPO, with funds planned for expanding cloud kitchens and repaying debt.
Curefoods in India's Crowded Food Market
Curefoods operates in India's competitive cloud kitchen and QSR market, projected to reach $2.84 billion by 2030 (16.7% CAGR). Its main competitor, Rebel Foods, is much larger, valued around ₹13,800 crore ($1.4 billion) in 2025. Giants like Zomato and Swiggy also face profitability challenges despite growing revenues. Zomato reported ₹5,405 crore revenue (Q3 FY25) and Swiggy posted ₹6,148 crore (Q3 FY26), but both manage widening losses and exit unprofitable ventures like Zomato's 15-minute delivery. The QSR market is expected to reach $47.28 billion by 2031. Delivery services are growing faster than dine-in, showing the consumer shift to convenience. Inflation and rising delivery costs are squeezing margins industry-wide.
Key Risks: Aggregator Reliance and Staff Turnover
A key risk for Curefoods is its heavy reliance on third-party delivery apps, which made up 82.2% of its revenue in FY25. This includes commission fees (18-22%), changes to platform policies, and how visible its brands are on the apps. The company also faces very high employee turnover, over 110%, which raises hiring and training costs and can harm service consistency. While EBITDA losses have shrunk, the company is still not profitable overall. Its unit economics show it spends more to earn revenue than it makes. Achieving consistent profitability is a significant challenge, especially with rapid scaling and marketing costs that jumped over 64% in FY25.
Long-Term Vision Post-IPO Delay
Curefoods expects a long-term business mix of 60% online and 40% offline, with physical stores driving more impulse purchases. The company aims to benefit from future demand recovery while keeping financial flexibility. Planned IPO funds were to expand its footprint, repay debt, and invest in subsidiaries. Despite the IPO delay, the company aims to triple revenue in five years. This growth agenda requires careful management of market pressures, better operational efficiency, and a clear path to profitability for public investors.