Curefoods in Talks to Acquire Krispy Kreme India from Dubai’s Landmark Group
- ByStartupStory | October 24, 2024
Curefoods is currently in discussions with Dubai-based Landmark Group to acquire the rights to sell the iconic doughnut brand, Krispy Kreme, in India. The negotiations come ahead of Curefoods’ upcoming $40 million funding round, according to a report by YourStory, citing two individuals familiar with the matter.
The discussions also hint at a potential investment from the Landmark Group into Curefoods’ ongoing funding round. “Landmark Group may invest in Curefoods’ $40 million funding round,” said the sources, who spoke on the condition of anonymity. Curefoods’ current investor, Chiratae Ventures, has committed $15 million to this round, which values the company at approximately $450-500 million. Additionally, Flipkart Co-founder Binny Bansal, an existing investor in Curefoods, is expected to participate in the funding.
While the deal is in its early stages and certain aspects may evolve, both Landmark Group and Chiratae Ventures have yet to comment on the ongoing negotiations. Curefoods also declined to provide any statement regarding the deal.
Krispy Kreme, a beloved 87-year-old US-based doughnut and coffee brand, is currently operated in India by Citymax Hotels India Pvt Ltd, a subsidiary of the Landmark Group. Krispy Kreme has a notable presence in key locations in India, including Chennai, Bengaluru, and Hyderabad.
“Krispy Kreme has stores in some very good store locations which are difficult to negotiate at the right price in today’s market, and it’s a global brand,” said one of the sources familiar with the deal. “Curefoods is expanding beyond just cloud kitchens, and Krispy Kreme would fit perfectly. It also adds to its portfolio of desserts, which currently has just CakeZone,” the source added.
Curefoods’ potential acquisition of Krispy Kreme aligns with the company’s strategy to build a ‘house of brands’ by capitalising on the growing popularity of the eating-out culture post-pandemic. Initially launched as a pure-play cloud kitchen platform, Curefoods has since evolved into an omnichannel business, catering to both online and offline consumers.
“There’s growth in omnichannel today and that’s well established. When they started, there were pandemic-related restrictions on restaurants, but now it isn’t the case anymore. In fact, the going-out segment, in general, is on the rise,” said the second source.
“They are looking to give a better experience in some of the newer stores they are opening. The aim is to build a ‘house of brands,’ which has online and offline presence, and houses different cuisines under distinct brands,” the source added.
Founded in 2020 by Ankit Nagori, former Flipkart executive and co-founder of Cult.fit, Curefoods has quickly gained traction in the Indian market. It has raised over $120 million in equity funding from investors, including Accel, Sixteenth Street Capital, and Iron Pillar. The company now boasts a portfolio of brands such as Eatfit, Chaat Street, Millet Express, Olio Pizza, Sharief Bhai, and Nomad Pizza.
In a social media post, Nagori revealed that four of the company’s brands had reached an annual revenue run rate of Rs 100 crore each by July 2024.
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