Curefoods shifts focus to offline presence, aims for 50-50 revenue split

Curefoods, one of India’s largest cloud kitchen players, is betting heavily on its offline play and plans to strengthen it further. In the next three years, it intends to scale to 1,000 locations, including 600 cloud kitchens and 350 quick service restaurants (QSR) and casual dining across 50 cities, said founder Ankit Nagori.

The Bengaluru-based company has 340 cloud kitchens in 35 cities and 60 offline outlets across 10 cities. Founded by Ankit Nagori in 2020, the company houses eight brands, including EatFit, CakeZone, Nomad Pizza, Frozen Bottle, Sharief Bhai, and Olio Pizza, catering to 10 cuisines.

Currently, nearly 70 per cent of the company’s revenue comes from online (from cloud kitchens), but soon at least 35 per cent of the company’s revenue will come from offline sources, and and in five years, the offline contribution will be 50 per cent.

• Also read: Curefoods targets Ebitda profitability in next two quarters

“What started as a cloud kitchen business is now a full-fledged F&B business. Currently, 70 per cent of our revenue is from our online presence, but over the next few years, as we keep opening more offline stores, this share will be 50-50,” Nagori told bussinesline.

He said four of its brands – Eatfit, Cakezone, Sharief Bhai, and Olio Pizza – have already crossed ₹100 crore in annualised sales, while Nomad Pizza “will cross this milestone in the next quarter”.

The company has taken Sharief Bhai as the primary brand for offline expansion, with over 40 outlets in Bangalore, Mysore, and many cities in Tamil Nadu. It plans to add 10 more Sharief Bhai restaurants in the next couple of months across South India, starting from Kerala. 

Further, the company aims for a ₹1,000-crore revenue run rate in the coming quarters, up from the current ₹820 crore (approx). By FY27, it plans to reach the ₹2,000-crore mark. It also aims to turn EBITDA profitable in the next one or two quarters.

Talking about funding, Nagori said that the intention now is to raise debt and that the company is looking to tap into ₹100 crore of debt financing to expand the business and open new outlets.

“We will look at annual ₹100 crore of debt capital for expansion,” Nagori said. “It’s very clear we want to have several brands across different price points to be able to cater to the market. One size fits all doesn’t work. Given that it’s a compounding business and we want to list, we don’t think there’s a need to dilute a lot,” he added.

Curefoods closed a funding round of ₹500-crore led by Flipkart cofounder Binny Bansal earlier in March.