Curefoods, a cloud kitchen company that operates ‘EatFit’, is in talks to raise $30 million in an equity funding round led by Chiratae Ventures.

First reported by ET, citing three people with direct knowledge, Curefoods will use the funds to acquire almost half a dozen smaller brands in the space and other inorganic growth opportunities.

Speaking on the development, one source stated,

“Given the inbound interest from investors, the company is likely to raise an extended Series B round, taking the total funding in the round to $75 million. The remaining fund raise will be at a higher valuation.”

Curefoods And The Cloud Kitchen Ecosystem

In 2020, to meet rising demand from the cloud kitchen sector, Curefit had carved out its health food vertical EatFit as an independent entity. This funding round follows the $13 million round raised by the cloud kitchen company in August 2021 as part of Series A funding. 

Having started operations in 2020, Curefoods operates brands EatFit, Aligarh House Biryani, Yumlane, and Masalabox. The company has over 25 kitchens across four cities in India. 

Curefoods has been acquiring and incubating multiple cloud-kitchen brands in the last few months. The company has acquired seven new D2C food brands- Paratha Box, Cake Zone, Ammi’s Biryani, MasalaBox, pizza brands Olio and Crusto’s, and Chaat Street in Bengaluru.

As per a source aware of the development, Curefoods is doubling its revenues quarter-on-quarter. Additionally, Curefoods is raising $10 million in debt from venture debt funds, sources added.

Cloud kitchen startups in India have been witnessing a growing trend, with total funding for cloud kitchen startups having doubled in 2021 to $234.2 million as of October from $112.4 million in all of 2020, as per Tracxn data.

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