Curefoods Secures $6.6 Million in Debt Funding from BlackSoil Group: A Strategic Move to Achieve EBITDA Breakeven and Rs 900 Crore Revenue Target

Curefoods Secures $6.6 Million in Debt Funding from BlackSoil Group: A Strategic Move to Achieve EBITDA Breakeven and Rs 900 Crore Revenue Target

In a significant development, Curefoods, a leading player in the cloud kitchen space, has raised $6.6 million in debt funding from BlackSoil Group, marking a critical step toward achieving profitability and scaling its business further. The latest funding round also saw participation from prominent investors, including Binny Bansal, the co-founder of Flipkart, and Caspian Investments. With the funding secured, Curefoods is now poised to hit its EBITDA breakeven target while eyeing a robust Rs 900 crore revenue by the end of the current financial year, representing an impressive 50% growth compared to FY24.

What is Curefoods and What Does It Do?

Curefoods is a cloud kitchen company that operates a portfolio of well-known food brands, offering a diverse array of delicious meals to customers. As a part of the growing cloud kitchen sector, the company leverages technology and optimized supply chains to cater to an increasingly digital-driven food service market. Curefoods operates a variety of brands, including Nomad Pizza, Olio Pizza, and Sharief Bhai Biryani, each offering unique culinary experiences.

Additionally, the company has made strategic moves in expanding its footprint. Curefoods acquired the South and West operations for Krispy Kreme, a renowned global brand. This acquisition bolstered Curefoods' market share in the rapidly growing food delivery industry and positioned the company to tap into a broader customer base.

The Debt Funding Round: Details and Key Investors

The latest funding round was structured as a debt raise, with Curefoods issuing 800 Series D Debentures to BlackSoil Group, raising a total of Rs 40 crore. BlackSoil’s participation in this round reflects the company's confidence in Curefoods' growth potential and business strategy.

In addition to BlackSoil, other investors contributed significantly to the funding round:

1. Caspian Investments: Caspian Investments participated by investing Rs 10 crore through 200 debentures. The investment highlights Caspian’s ongoing support for promising startups in the food and technology sectors.

2. Binny Bansal and Jitendra Kumar Bansal: Flipkart co-founder Binny Bansal, along with his associate Jitendra Kumar Bansal, invested Rs 6.39 crore through the purchase of 595 Series D1 Compulsorily Convertible Cumulative Preference Shares. Binny Bansal has been a long-time supporter of Curefoods, having previously participated in the company's earlier funding rounds.

This mix of debt and equity funding signifies the continued confidence that investors have in Curefoods’ business model, which blends cloud kitchens with a wide array of strong, emerging food brands.

Curefoods’ Financial Strategy: Aiming for EBITDA Breakeven

One of Curefoods’ key objectives is to achieve EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) breakeven in the short term. This financial milestone is significant for any startup as it indicates the company’s ability to generate enough operational revenue to cover its costs and begin moving toward profitability. With the infusion of funds, Curefoods is looking to optimize its operations and scale its business to a level where it can comfortably reach the breakeven point.

In addition to the goal of EBITDA breakeven, Curefoods is targeting a revenue of Rs 900 crore by the end of the current financial year. This represents a substantial 50% year-on-year growth compared to FY24, a clear indicator of the company's rapid expansion and increasing market share within the food service industry.

Expansion Plans and Acquisition of Krispy Kreme’s South and West Operations

Curefoods' acquisition of Krispy Kreme’s South and West India operations further underscores its ambition to expand its portfolio and reach a wider customer base. Krispy Kreme, a beloved brand globally for its iconic doughnuts, has a strong following in India. By acquiring Krispy Kreme’s operations in these regions, Curefoods adds another well-established brand to its portfolio, diversifying its product offerings and strengthening its presence in the competitive food service market.

The strategic acquisition is likely to help Curefoods tap into a different customer segment that is loyal to Krispy Kreme, thereby boosting its revenue and solidifying its position in the cloud kitchen and quick-service restaurant (QSR) sectors.

Previous Funding Rounds and Growth Trajectory

Curefoods has already made significant strides in its growth journey, with its previous funding rounds helping the company scale its operations. The company’s last major funding round in 2024 raised Rs 300 crore (approximately $36 million) and was led by Binny Bansal’s venture capital firm, Three State Ventures. Other participants in the round included IronPillar, Chiratae Ventures, ASK Finance, and Winter Capital.

This previous round of funding was a mix of primary and secondary infusions, helping the company expand its operations and further invest in the development of its brands and technology infrastructure. It was also instrumental in cementing Curefoods’ position as a fast-growing cloud kitchen startup with a clear path to profitability.

The Competitive Cloud Kitchen Landscape: Challenges and Opportunities

The cloud kitchen model has gained significant traction in recent years, largely driven by the increasing demand for food delivery services. The growing adoption of online ordering platforms and the shift in consumer behavior toward convenience have made cloud kitchens a popular choice for both investors and consumers alike.

Curefoods is part of a highly competitive market, with other players such as Rebel Foods (the parent company of brands like Behrouz Biryani and Oven Story Pizza) raising substantial funding rounds. In fact, Rebel Foods recently raised $210 million in a mix of primary and secondary funding rounds, led by Temasek along with Evolvence.

Despite the fierce competition, Curefoods’ strategic investments in technology, operations, and brand portfolio give it a solid edge. The ability to scale and diversify its offerings, coupled with its robust financial backing, positions Curefoods well for continued growth in the cloud kitchen industry.

Future Outlook for Curefoods

Curefoods is on a promising trajectory as it looks to scale its operations, optimize its cost structure, and achieve profitability. The recent debt funding and strategic acquisitions reflect the company’s efforts to position itself as a leader in the rapidly evolving cloud kitchen industry. With a target of Rs 900 crore in revenue for FY25, Curefoods is set to continue expanding its reach and cementing its position in the highly competitive food service sector.

For investors and stakeholders, the road ahead looks promising as Curefoods enters the next phase of its growth journey, with a clear focus on achieving financial stability, scaling its brand portfolio, and ultimately achieving profitability.

As the company advances toward its goals of breakeven and robust revenue growth, Curefoods’ ability to manage its debt effectively and leverage its investors' confidence will be crucial in maintaining its upward trajectory in an increasingly crowded and competitive market.

Conclusion

Curefoods' recent $6.6 million debt raise from BlackSoil, with additional participation from Binny Bansal and Caspian Investments, underscores the company’s commitment to scaling its operations and achieving EBITDA breakeven. The infusion of capital, combined with strategic acquisitions and a strong brand portfolio, puts Curefoods in an excellent position to achieve its target of Rs 900 crore in revenue by the end of FY25.

With the cloud kitchen model rapidly gaining momentum and consumer demand for food delivery services continuing to rise, Curefoods is well-positioned to capitalize on these market trends and continue its growth trajectory. The company’s focus on operational excellence, brand diversification, and financial discipline will be key factors in its ability to compete in this highly competitive sector and achieve long-term success.