Flipkart Co-Founder Binny Bansal is reportedly contemplating an investment of $25-30 million into Curefoods, a startup led by his former colleague Ankit Nagori. Curefoods specializes in cloud kitchens and restaurants, according to individuals privy to the discussions. Should this materialize, it would increase Bansal’s overall investment in the company to approximately $50 million.
Bansal, who finalized his departure from Flipkart in August by divesting his remaining shares in the e-commerce company he co-established with Sachin Bansal back in 2007, has swiftly increased his personal investments, directing substantial funding towards startups like PhonePe and Curefoods.
“Binny is looking to double down on Curefoods. This is similar to his investment style of backing a certain number of startups with a meaningful stake,” said one of the persons cited above.
Both Bansal and Nagori chose not to provide any comments.
During April, Curefoods, operating a chain of cloud kitchens and expanding into the restaurant business, concluded a fundraising round of INR 240 crore with investments from Bansal’s Three State Ventures, encompassing primary and secondary investments. Bansal presently holds approximately 12% ownership in Curefoods, a stake expected to increase with this fresh investment.
Read More: Curefoods secures INR 300 crore funding led by Three State Capital, aims to expand offline footprint
It remains uncertain whether Bansal’s investment will involve other investors participating in a funding round or if it will primarily involve a secondary share sale.
Bansal’s recent intentions to invest in Curefoods indicate a strengthening of the relationship between the two entrepreneurs. Additionally, he has solidified his decision to acquire a 10% ownership stake in the Bengaluru franchise of the volleyball team in the Prime Volleyball League (PVL), where Nagori holds the majority of shares.
People aware of Bansal’s plans stated that the entrepreneur has been meeting a wide array of startup founders to discuss potential investments. Rajnish Baweja, an IIT Delhi alumnus, is a key executive at Three State Ventures, responsible for reviewing investment proposals for Bansal.
In August, Bansal was expected to have realized approximately $650 million through a secondary share sale, in which Accel and Tiger Global also divested their remaining shares to Walmart, the parent company of Flipkart, which now holds more than 80% of the e-commerce firm.
When Flipkart secured $3.6 billion in funding two years ago, Bansal had additionally disposed of a portion of his shares for $200-250 million to Chinese internet giant Tencent, as reported in December 2021. This transaction left him with slightly less than 2% ownership in Flipkart.
Earlier on Monday, Curefoods officially confirmed the acquisition of the foodtech company Yumlane, along with its proprietary pizza technology. The financial terms of this deal remain undisclosed.
Read More: Curefoods expands portfolio with strategic acquisition of Yumlane pizza brand
This acquisition will empower Yumlane to harness Curefoods’ network, allowing for the improvement of its exclusive pizza technology and the expansion of its operations. Notably, Curefoods was an existing investor in Yumlane, along with Orios Venture Partners, as well as angel investors like Binny Bansal from Flipkart and Anupam Mittal, the founder of Shaadi.com.
In 2021, Curefoods, headquartered in Bengaluru, acquired the franchisee rights for Yumlane Pizza’s cloud kitchen in the South India market. Then, in 2022, they further solidified their involvement by acquiring a 10% stake in the company.
Curefoods encompasses a diverse portfolio of brands including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle. The company operates a network of over 200 cloud kitchens and offline stores, spanning across 15 cities in India.
Established in 2016 and headquartered in Mumbai, Yumlane operates an expansive distribution network spanning 15 cities. Among its clientele are well-known brands like Barbeque Nation, Frozen Bottle, and Curefoods.