In recent months, Curefoods has acquired and incubated several cloud kitchen businesses. The new money will be utilized to buy a slew of new digital food companies throughout the globe.
Curefoods, Ankit Nagori’s spin-off food tech company that owns Eatfit, Yumlane, Aligarh House Biryani, and Masalabox, has secured $13 million in funding led by Iron Pillar, Nordstar, and Binny Bansal. According to a release, leading angels Adil Allana, Rashmi Kwatra, Lydia Jett, and Kunal Shah also took part in the round.
With this round of investment, the firm has secured a total of $20 million in seed and Series A funding. In the next weeks, Curefoods hopes to conclude a $10 million debt raise. According to Ankit, the company now seeks to grow from four to eight cities in South India in the next 12 months, as well as obtain five additional businesses.
Ankit told a news blog that, “The pandemic has changed the way people consume and place internet food orders. Some did it for the sake of convenience, while others did it for the sake of fun. This led us to conclude that there is no such thing as a one-size-fits-all solution. We were successful with Eatfit with a specific type of audience at a specific time, but we couldn’t accommodate for bulk ordering fun. We intended to use a multi-brand approach that suited to various audiences’ demands.”
He went on to say that just a handful of Indian cloud-kitchen companies are among the top ten ordering options for consumers throughout the country, with regional brands also being among the top ten. “This means that the localized brands haven’t been able to scale up to a national level. As a result, we decided to partner with Curefoods to provide local well-known cloud kitchen products, which are digital businesses.”
Anand Prasanna, the Managing Partner of Iron Pillar, stated that internet delivery has grown significantly in the last 18 months.
He said that food has been used to establish brands for years in the business world and that the same approach will be used in India. “As people’s purchasing power grows, they’ll demand more sophisticated selections and tastes, and the online cloud-kitchen is the best method to offer at scale.”
Another motivation for investing in Curefoods was the team, according to Anand, who stated that food as a brand requires a focused execution strategy.
They will be purchasing regional companies that are huge online, popular in their regions but haven’t been able to expand nationwide, according to Ankit. The other approach is to target new-age cloud-kitchen businesses that are gaining traction in a few locations and assist them in forming partnerships to expand.
“We are pleased to be financing Ankit and the talented staff behind Curefoods, who we feel is ideally positioned to make a significant contribution in the online food market of India, establishing important businesses at scale,” said Ole Ruch, Managing Partner at Nordstar.