Curefoods, a prominent player in the cloud kitchen space, has recently reported significant financial figures for the fiscal year ending March 31, 2023. Despite experiencing an impressive more than fourfold increase in operating revenue, reaching Rs 382 crore, the company also witnessed a nearly fivefold increase in losses, totaling Rs 342 crore. The startup, founded by former Flipkart executive Ankit Nagori in 2020, operates popular brands such as EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle.

Financial Performance

The company’s financials for FY23 showcase a notable growth trajectory. Operating revenue surged from Rs 89 crore in FY22 to an impressive Rs 382 crore in FY23. This remarkable growth was primarily attributed to the sale of products, generating Rs 374 crore, a fourfold increase from the previous year.

However, the robust revenue growth was accompanied by a significant increase in expenses, rising four-and-a-half times to Rs 754 crore from Rs 166 crore. Employee benefit expenses amounted to Rs 103 crore, nearly four times higher than FY22. The most substantial cost component was advertising and promotional expenses, growing over four times to Rs 107 crore.

Comparison with Competitors

Curefoods’ rival in the cloud kitchen sector, Rebel Foods, reported an operating revenue of Rs 1,195.2 crore for FY23, marking a 40% increase from the previous year. Despite the impressive revenue growth, Rebel Foods also experienced a widened loss, reaching Rs 656.5 crore compared to Rs 534.2 crore in FY22. This indicates the competitive nature of the cloud kitchen industry, where companies are striving for market share and dominance.

Investment Landscape

In an effort to fuel its growth and remain competitive, Curefoods attracted significant investments during FY23. Flipkart co-founder Binny Bansal, a former colleague of Curefoods’ founder Ankit Nagori, was reported to be considering an investment of $25-30 million in the startup. This potential investment would bring Binny Bansal’s total contribution to Curefoods to around $50 million.

Earlier in April, Curefoods successfully closed a fundraising round amounting to Rs 240 crore, with Three State Ventures, a venture capital firm led by Binny Bansal. The round included both primary and secondary investments. The funding landscape for the cloud kitchen sector remained active in 2023, with Rebel Foods securing Rs 75 crore in debt from Northern Arc and Stride Ventures, and Kitchens@ raising a substantial Rs 540 crore in a funding round led by private equity firm Finnest in December.

Curefoods’ impressive revenue growth in FY23 reflects the increasing demand for its brands in the competitive cloud kitchen space. However, the widening losses emphasize the challenges associated with scaling operations and maintaining profitability in this rapidly evolving industry. The anticipated investment from Binny Bansal and the successful fundraising rounds position Curefoods strategically in the market, indicating confidence in its potential for sustained growth amidst a dynamic and competitive landscape.

By Admin

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