Three State Ventures backed Rs 300 Cr equity & debt funding raised by Curefoods

Three State Ventures, a fund run by Binny Bansal, led an equity and debt round that raised Rs 300 crore ($36.5 million) for the cloud kitchen brand Curefoods. The remaining money was contributed by IronPillar, Chiratae, ASK Finance, Winter Capital, and Three State Capital, who each contributed Rs 240 crore.

According to a statement from the company, Curefoods will use the money raised to diversify its brands into offline formats and broaden its geographic reach from its current online-only cloud kitchen presence. Prior to this, the company had raised more than $62 million in January 2022 from Iron Pillar, Chiratae, Sixteenth Street Capital, Accel, Binny Bansal, Alteria Capital, BlackSoil Capital, and other investors.

“Our investors understand our brand vision very well and are aligned to our long-term goal of creating multiple 500 crore brands,” said Ankit Nagori, founder of Curefoods.

Established in 2020, Curefoods is the parent company of brands like CakeZone, EatFit, Yumlane, Aligarh House Biryani, and Masalabox. 150 multi-brand cloud kitchens and over 100 kitchens in over 200 locations across 15 cities are supported by a backend operation of over 7 food factories. It plans to increase its presence in Tier I and Tier II cities this year.

While a number of independent brands, including Biryani Blues and Biryani by Kilo, are its indirect rivals, Curefoods’ main competitors are Coatue-backed Rebel Foods and Box8.

Throughout FY22, Curefoods reported operating revenue of Rs. 89.1 crores. According to the company’s regulatory filings, operating expenses amounted to nearly 1.8X operating income, and losses for the fiscal year totaled Rs. 71.25 crores.

According to Curefoods, it had a year-over-year growth rate of over 300% for FY23 and expects to surpass 1.1 million monthly orders by December 2022 with recurring revenue of Rs 550 crore. It plans to open 50 more locations in order to handle 2 million orders per month and aims to reach an ARR of Rs 1,000 crore by the end of FY23.