Overview
Curefoods, an Indian cloud kitchen operator founded by former Flipkart executive Ankit Nagori, has decided to suspend its plans for an IPO after failing to win institutional support at the valuation it had targeted. The company had secured regulatory clearance months earlier but concluded that current market conditions and investor hesitation around valuations for loss-making startups made it imprudent to proceed.
Planned size and valuation
The company had been seeking to raise 8 billion rupees through a public offering at a valuation near 40 billion rupees. During roadshows, Curefoods was unable to obtain commitments from mutual funds and other institutional investors at that price point, according to people familiar with the discussions.
Timing and next steps
Curefoods has elected to defer its listing and revisit the IPO process next year - contingent on an improvement in market conditions. The firm’s decision to delay follows similar postponements by other sizable Indian technology-focused businesses, which have faced intensified scrutiny because they are loss-making.
Operations
The company operates a portfolio of consumer-facing brands that include EatFit, Krispy Kreme, CakeZone, and Sharief Bhai Biryani.
Contextual notes
- This halt reflects investor reluctance to back loss-making internet and technology businesses at the valuations those companies had proposed.
- Management has retained the option to resume listing efforts should market sentiment and valuation expectations align more favorably next year.
Conclusion
The pause in Curefoods’ IPO trajectory underscores persistent valuation sensitivity among institutional investors for loss-making startups and indicates that market receptivity will be a decisive factor if and when the company returns to the market.