New IPO: The company is bringing an IPO of Rs 800 crore, SEBI has approved it, a big opportunity for investors!

News Topical, Digital Desk : New IPO: Cloud kitchen operator Curefoods has received approval from market regulator SEBI for an initial public offering (IPO) worth ₹800 crore. The Bengaluru-based company operates brands such as EatFit, CakeZone, and Krispy Kreme. According to Moneycontrol, the IPO will be a combination of a fresh issue and an offer for sale (OFS), with 48.5 million shares being sold.

In this public issue, early investors will have the opportunity to sell partial or full stake. The company's founder and CEO Ankit Nagori will not sell any of his shares in this issue. Those reducing their stake in the IPO include Iron Pillar, Crimson Winter, Accel, Chiratae Ventures and Curefit Healthcare. Iron Pillar PCC will be the largest seller, selling 1.91 crore shares. Crimson Winter will sell 97.6 lakh shares, Accel 45.7 lakh shares and Chiratae 36.6 lakh shares. Curefit will offload a small portion of approximately 12.8 lakh shares.

What will the company do with the Rs 800 crore? Out of the Rs 800 crore fund, the company will spend Rs 152.5 crore on new cloud kitchens and infrastructure expansion. Rs 126.9 crore will be used to repay debt and Rs 92 crore will be given to its subsidiary Fan Hospitality. Additionally, ₹40 crore will be spent on lease deposits and ₹14 crore on brand building. Curefoods can raise ₹160 crore through a pre-IPO placement before the IPO. 

₹ 746 crore revenue in FY2025 Financially, the company's revenue has increased from ₹382 crore in FY2023 to ₹746 crore in FY2025, although its losses have remained stable at ₹170 crore. EBITDA losses have declined from ₹276 crore to ₹58 crore. However, the company is spending ₹1.27 for every ₹1 earned. The company's biggest challenge is high employee turnover, which was over 111% in FY25. Furthermore, over 82% of revenue comes from third-party platforms like Swiggy and Zomato, whose policy or commission changes could impact Curefoods' margins. 

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