Curefoods’ FY24 Loss Halves To INR 173 Cr

Bengaluru-based cloud kitchen startup Curefoods managed to reduce its net loss by 49.64% to INR 172.6 Cr in the financial year ended March 2024 (FY24) from INR 342.7 Cr in FY23, as its top line surged and margins improved.

The startup’s operating revenue zoomed 53.17% to INR 585.1 Cr in FY24 from INR 382 Cr in the previous fiscal year.

The startup narrowed its EBITDA loss to INR 82.8 Cr in FY24 from INR 275.7 Cr in FY23, resulting in a 58 percentage point improvement in its EBITDA margin to -14% from -72% in the previous fiscal year.

Curefoods, founded by Ankit Nagori in 2020, operates a diverse portfolio of brands including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle. It claims to manage more than 200 cloud kitchens and offline outlets, offering over 10 cuisines across 15 cities in India.

In March this year, the startup secured a funding of INR 200 Cr (around $25 Mn) from Flipkart cofounder Binny Bansal’s Three State Ventures.

Last year, Curefoods raised INR 300 Cr ($37 Mn) in a funding round led by Three State Ventures. The round was a mix of primary and secondary equity and debt.

Zooming Into The Expenses

Curefoods managed to control the rise in its total expenditure during the year under review. Despite a 50% increase in operating revenue, its expenses grew only 6.97% to INR 806.8 Cr in FY24 from INR 754.2 Cr in FY23.

Cost Of Materials Consumed: The cloud kitchen startup spent INR 229.6 Cr under this head, an increase of 33.72% from INR 171.7 Cr in FY23. 

Employee Benefit Expenses: The startup spent INR 148.2 Cr on employee benefits, an increase of 43.19% from INR 103.5 Cr in the previous fiscal year.

Advertising & Promotional Expenses: In a bid to cut its losses, Curefoods trimmed advertising and promotional spending by 50.84% to INR 52.8 Cr from INR 107.4 Cr in FY23.

Guarantee Commission Expenses: Guarantee commission costs rose significantly by 56.22%, reaching INR 109.2 Cr in FY24 from INR 69.9 Cr in FY23.