Cloud kitchen startup Curefoods reported a fourfold increase in operating revenue, reaching INR 382 crore for the fiscal year ending on March 31, 2023. However, the loss widened nearly five times to INR 342 crore.
The company, operating well-known brands such as EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle, reported a loss of INR 72 crore on a revenue of INR 89 crore in FY22, as per company filings obtained through the business intelligence platform Tofler.
Curefoods Revenue Breakdown:
Curefoods generated INR 374 crore from product sales, marking a fourfold increase compared to the previous year, as indicated by the filings.
Expenditures surged four-and-a-half times, reaching INR 754 crore from INR 166 crore. The company allocated INR 103 crore to employee benefit expenses, nearly four times higher than in FY22.
The most substantial cost component in FY23 was advertising and promotional expenses, which increased by over four times, reaching INR 107 crore.
Rival cloud kitchen firm Rebel Foods reported an operating revenue of INR 1,195.2 crore for FY23, approximately 40% higher than the previous year. Nevertheless, its loss widened to INR 656.5 crore from INR 534.2 crore in FY22.
Curefoods was founded by former Flipkart executive Ankit Nagori in 2020. On October 31, SnackFax reported that Flipkart co-founder Binny Bansal was likely to infuse $25-30 million into his former colleague’s startup, taking his total investment in the company to around $50 million.
Read Other Articles: Flipkart Co-Founder Binny Bansal may invest $25-30 million more in Ankit Nagori’s Curefoods
In April, Curefoods closed a INR 240 crore fundraising round with Three State Ventures, led by Bansal. The round included both primary and secondary investments. This aligns with the trend of increased funding activities in the sector during 2023. Rebel Foods, for instance, secured a INR 75 crore debt from Northern Arc and Stride Ventures. In December, the cloud kitchen-focused startup Kitchens@ raised an impressive INR 540 crore in a funding round, with private equity firm Finnest taking the lead.
Read Other Articles: Cloud kitchen startup Kitchens@ secures $65 Million in Series C funding led by Finnest
On October 30, it was reported that Curefoods had closed the acquisition of foodtech company Yumlane and its proprietary technology. In 2021, Curefoods took Yumlane Pizza franchise rights for the southern Indian market, and subsequently purchased a 10% stake in the company in 2022.
Read Other Articles: Curefoods expands portfolio with strategic acquisition of Yumlane pizza brand
Curefood’s results come as the wider food-delivery ecosystem races to increase profitability. The listed platform Zomato posted a profit of 36 crore INR for the quarter ended September 30. In May, rival Swiggy said that its core food-delivery business had turned profitable in March but did not provide further details.
Read Other Articles: Zomato reports remarkable surge in profit, achieving second consecutive profitable quarter in FY24
