Cloud kitchen startup Curefoods has merged with rival Maverix whose backers include Accel Partners, Swiggy and Zephyr.
Curefoods will be valued at about $280 million, or about Rs 2,100 crore, post the merger, people familiar with the deal said. The companies did not share terms of the deal.
Following the merger with Maverix, which operates over 50 outlets across Delhi, Mumbai, and Bengaluru, Curefoods will have 125 kitchens across 12 cities, making it one of the largest cloud kitchen players in the country. It will absorb three brands of Maverix and about 500 employees as part of the deal.
Earlier this month, Curefoods had raised $62 million, from Iron Pillar, Chiratae Ventures, Sixteenth Street Capital, Accel Partners and Flipkart cofounder Binny Bansal. It is in talks to raise another $50-75 million, which may close in the next few months, as it looks to bolster its brand portfolio, sources cited earlier said.
“Together, we now have the largest manufacturing capability in the fresh food space,” Curefoods founder Ankit Nagori said in a statement. “We are confident that our combined growth and stronger-than-ever platform will benefit our consumers on their quest for the best food options in India.”
Maverix was founded in 2015 by Shripad Nadkarni and Shree Bharambe. They will now take up key roles at Curefoods, a company spokesperson said. “Shripad, who is one of the best brand experts in the country, will be instrumental in helping Curefoods sharpen brand narratives for multiple brands,” the person said.
“This game-changing merger comes at a time when the Indian cloud kitchen ecosystem is thriving and presents numerous opportunities for growth and scale,” Nadkarni said in a statement. “We believe that Curefoods’ digital brand creation expertise, tech prowess, and strong market penetration along with our supply chain expertise, efficient kitchen operations, and experience in creating top food brands make for the right synergy.”
Delivery-only businesses—technically brand names—have ballooned in the past 18-24 months as they’ve emerged as a cost-efficient way to maintain business continuity and expand customer reach in an industry that was decimated by Covid-19.
Source: Economic Times