Cloud kitchen startup Curefoods has paused its initial public offering plans due to ongoing turmoil in the Indian equities market and concerns over its valuation, according to inc42.com. The company had secured SEBI approval for the IPO in October last year and was targeting a valuation of ₹4,000 crore (about $419 million).
The startup planned to raise ₹800 crore through a fresh issue and offer up to 4.85 crore equity shares for sale by early investors including Accel, Chiratae Ventures, Nordstar Partners, Iron Pillar, Alteria Capital, and Curefit Healthcare. However, mutual funds showed reluctance to back the valuation during roadshows, especially given the current market conditions. A source close to the discussions said Curefoods decided to hold off and may attempt to list next year if market conditions improve, as the company does not immediately require capital infusion.
Curefoods intended to use the IPO proceeds to expand its cloud kitchen network by adding over 66 new kitchens for brands like Olio’s Pizza and Krispy Kreme, allocating ₹152 crore for this expansion. Investor concerns were heightened by the startup's losses, which affected its ability to command a premium valuation in a challenging market environment. The decision follows similar moves by other startups amid market volatility.
The company’s draft red herring prospectus had outlined the IPO structure, but questions sent to Curefoods remained unanswered at the time of reporting, per inc42.com. The startup will monitor market conditions before deciding on the timing of its public listing.