Cloud kitchen startup Curefoods reports fourfold jump in FY23 revenue, loss widens

Cloud kitchen startup Curefoods reported a more than fourfold increase in operating revenue to Rs 382 crore for the financial year ended March 31, 2023, even as loss widened nearly five times to Rs 342 crore.

The firm, which runs popular brands like EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani and Frozen Bottle, had posted a loss of Rs 72 crore on revenue of Rs 89 crore in FY22, according to company filings sourced through business intelligence platform Tofler.

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Curefoods made Rs 374 crore out of its total operating revenue from the sale of products, a fourfold increase from the year before, the filings show.

Expenses rose four-and-a-half times to Rs 754 crore from Rs 166 crore. The firm spent Rs 103 crore in employee benefit expenses, nearly four times higher than FY22.

Advertising and promotional expenses, which grew over four times to Rs 107 crore, was the biggest cost component in FY23.

Rival cloud kitchen firm Rebel Foods had reported an operating revenue of Rs 1,195.2 crore for FY23, about 40% higher than the previous year. Its loss widened to Rs 656.5 crore from Rs 534.2 crore in FY22.

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Curefoods was founded by former Flipkart executive Ankit Nagori in 2020. On October 31, ET reported that Flipkart cofounder 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.In April, Curefoods closed a Rs 240 crore fundraising round with Bansal’s Three State Ventures, comprising primary and secondary investments. This was in line with the sector seeing a slew of funding activity in 2023, with Rebel Foods raising Rs 75 crore in debt from Northern Arc and Stride Ventures. In December, another cloud kitchen-focused startup, Kitchens@, raised Rs 540 crore in a funding round led by private equity firm Finnest.

On October 30, ET 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.

Curefood’s results come as the wider food-delivery ecosystem races to increase profitability. Listed platform Zomato posted a profit of Rs 36 crore 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.


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