Binny Bansal’s Three State Capital leads Rs 300 crore funding in Curefoods

Curefoods has also raised debt in this round but did not disclose details.

Bansal’s Three State Capital has invested Rs 240 crore in this round along with existing investors IronPillar, Chiratae Ventures, ASK Finance and Winter Capital.

What the funds will be used for

Curefoods, according to a company statement, plans to use the new capital to expand its geographical reach and diversify its brands into offline formats from the current online-only cloud kitchen model.

ET had reported on March 10 that Bansal was looking to invest more in Curefoods as well as acquire secondary shares held by Cultfit in Curefoods. The cloud kitchen startup was hived off from fitness startup Cultfit, founded by Mukesh Bansal and Nagori in 2016.

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“Our investors understand our brand vision very well and are aligned to our long-term goal of creating multiple 500 crore brands,” said Nagori. “This funding will allow us to reach new customers and markets while also targeting our offline model expansion.”

Binny Bansal held about 5% in Curefoods and this is slated to go up to over 12% post the investment, ET had reported last month.

Curefoods said in a statement that it had grown by over 300% (Y-o-Y) in financial year 2023, terming it “remarkable growth” for the brand and its revenue.

Expansion plans

Going forward, Curefoods is aiming to expand to tier 1 and tier 2 cities in the North and West of India. The Bengaluru-based startup said it continues to focus on profitability while seeking growth and a presence across India in the coming years.

The startup currently has over 200 locations in 15 cities serviced by a backend operation of over seven food factories and more than 150 multi-brand cloud kitchens. Nomad Pizza and Sharief Bhai are among its fastest-growing brands, growing at over 50% on a quarterly basis, the firm added.

On the back of the new funding and expansion, Curefoods is aiming to hit an annualised revenue run rate of Rs 1,000 crore by the end of 2023. During the same period, it plans to open 50 additional locations with the goal of managing 2 million orders a month. In December 2022, it hit a milestone, recording more than a million orders in a month.