Curefoods Narrows Loss and Boosts Revenue in FY24, Shows Strong Growth in Cloud Kitchen Business

Curefoods Narrows Loss and Boosts Revenue in FY24, Shows Strong Growth in Cloud Kitchen Business

Curefoods, a Bengaluru-based cloud kitchen startup, has demonstrated a remarkable financial turnaround in the financial year ended March 2024 (FY24). The company managed to reduce its net loss by 49.64%, narrowing it down to INR 172.6 crore, compared to INR 342.7 crore in the previous fiscal year, FY23. This reduction in losses highlights the startup’s ability to scale its operations and improve efficiency, despite the challenges faced in the competitive cloud kitchen sector. Alongside the reduction in losses, Curefoods achieved significant growth in its operating revenue, which surged by 53.17%, reaching INR 585.1 crore in FY24, up from INR 382 crore in the previous fiscal year.

Curefoods, founded in 2020 by Ankit Nagori, has carved a niche for itself in the rapidly expanding cloud kitchen industry, which focuses on food delivery services through a network of strategically located kitchens. The startup operates a diverse portfolio of popular food brands, including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle. These brands collectively offer a wide array of cuisines across 15 cities in India, operating through a combination of more than 200 cloud kitchens and offline outlets. This wide geographic and product diversity has allowed Curefoods to tap into various market segments, increasing its customer base and revenue potential.

One of the key highlights of Curefoods’ performance in FY24 was its impressive improvement in margins. The startup significantly reduced its EBITDA (earnings before interest, taxes, depreciation, and amortization) loss, which fell to INR 82.8 crore in FY24 from INR 275.7 crore in FY23. This reduction in EBITDA loss translated into a dramatic 58 percentage point improvement in the company’s EBITDA margin, which improved to -14% in FY24, compared to -72% in the previous fiscal year. This shift indicates that Curefoods is successfully managing its cost structure and improving its operational efficiency, which bodes well for the company’s future growth prospects.

Despite still being in the growth phase, Curefoods’ ability to enhance its revenue while narrowing losses is a positive signal for investors and stakeholders. The cloud kitchen model, while innovative and fast-growing, has been challenging for many startups due to high operational costs and intense competition. However, Curefoods seems to have found its footing by focusing on product quality, customer experience, and a robust expansion strategy.

The company’s strong growth trajectory can be attributed to its unique business model, which focuses on cloud kitchens. These kitchens allow Curefoods to reduce overheads related to setting up physical restaurants while expanding quickly into new cities and regions. The shift towards a more scalable, delivery-oriented model has proven to be effective, as more consumers in India embrace food delivery services, particularly in the wake of the pandemic.

Curefoods’ diverse brand portfolio has also been a crucial factor in its success. By catering to a variety of tastes and preferences, from healthy meal options at EatFit to indulgent desserts at CakeZone, the company has been able to build a loyal customer base across different demographics. Moreover, with brands like Nomad Pizza and Sharief Bhai Biryani, Curefoods has tapped into popular, established food categories, ensuring that it attracts a wide range of customers.

Looking ahead, Curefoods is likely to continue expanding its reach and scaling its operations. With a growing presence in 15 cities and an expanding portfolio of brands, the company appears well-positioned to capitalize on the growing demand for food delivery services in India. If the company can continue to refine its operations, improve profitability, and scale efficiently, it has the potential to become a major player in the cloud kitchen industry.

In conclusion, Curefoods has demonstrated strong financial growth in FY24, successfully reducing its losses while boosting revenue and improving margins. The company’s innovative approach to the cloud kitchen model and its diverse portfolio of brands have set the stage for continued growth in the competitive food service sector. With this trajectory, Curefoods could become a leading player in India’s cloud kitchen market.