IPO-bound Curefoods, the internet-driven multi-brand food services company, is stepping up its focus on Tier-2 cities as it looks to its next phase of growth, according to its draft papers. The Bengaluru-based firm, which turns five this Monday, is positioning the milestone as a launchpad to scale beyond metros.
The company sees Tier-2 markets as a largely untapped growth frontier, fuelled by rising disposable incomes, the expanding gig economy and increasing penetration of digital payments.
"We intend to use our existing footprint to support expansion and deepen offline presence in Tier-2+ cities by leveraging our scalable supply chain network," Curefoods said in its draft papers filed with markets regulator Securities and Exchange Board of India.
Industry estimates point to a widening opportunity. Redseer Research and Analysis values India's food services market at Rs 6.60 lakh crore in 2024 and expects it to touch Rs 12-12.6 lakh crore by 2030, growing at 10-11% annually. While metros and Tier-1 cities continue to prioritise convenience and variety, Tier-2 regions are shifting from affordability to branded and experiential dining.
Curefoods has managed to build scale in an otherwise fragmented sector. Redseer noted that only a handful of players have crossed the Rs 500 crore revenue mark, with companies like Curefoods using a multi-brand approach to diversify risk. The firm reported operating revenues of Rs 746 crore in FY2025, up 27.46% year-on-year, from 502 service locations across 70 towns and cities.
Its expansion strategy spans kiosks in malls and tech parks, full-service restaurants for dine-in experiences, and shop-in-shop formats for quick service. To ensure consistency, Curefoods is rolling out company-wide SOPs and integrating its technology stack, including AI-assisted demand planning and real-time order tracking.
The company's proposed IPO comprises a fresh issue of shares worth Rs 800 crore and an offer for sale of 4.85 crore equity shares. It is awaiting Sebi's nod to launch the maiden public issue.
Of the fresh issue, Rs 152.53 crore will be used for expanding cloud kitchens, restaurants, kiosks and Krispy Kreme Theatres, with staggered deployment over FY27-29. Also, funds will be deployed for a central kitchen, restaurants under subsidiary Fan Hospitality, and additional stakes in units such as Cakezone Foodtech, Millet Express Foods, Munchbox Frozen Foods and Yum Plum.
Additionally, some proceeds will be used to pare debt, cover lease payments and strengthen sales and marketing.
Founded in 2020 by Ankit Nagori, Curefoods' portfolio spans healthy food brands like EatFit and Millet Express, desserts including CakeZone and Frozen Bottle, pizza players Olio Pizza and Nomad Pizza, Indian cuisine brands such as Sharief Bhai Biryani and Rolls on Wheels, alongside the recently acquired franchise rights for Krispy Kreme in India.
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