IPO-bound cloud kitchen major Curefoods reported an attrition rate of 111.7% for the financial year ended March 31, 2025 (FY25). This was the third consecutive year the company recorded attrition rate above 100%, according to its draft red herring prospectus (DRHP) filed with markets regulator SEBI for its IPO.
The IPO will comprise a fresh issue of shares worth up to INR 800 Cr ($304 Mn) and an offer for sale (OFS) of up to 4.85 Cr equity shares.
A total of 5,347 permanent employees left the company in FY25, as per the draft papers. In FY24, exits were at 4,148 as against the total employee count of 3,908, leading to a 127.7% attrition rate.
Similarly, in FY23, the company’s attrition rate stood at 116.6%, with 2,383 exits on a base of 2,537 employees.
“Attrition rate is calculated as overall exits including retired permanent employees divided by average number of permanent employees in the relevant financial period,” the filing read.
The consistently high attrition rate suggests deeper issues with employee retention.
“High attrition and competition for manpower may limit our ability to attract and retain the skilled manpower necessary for us to meet our future growth requirements. We cannot assure you that the attrition rate of our employees will not increase,” the DRHP added.
Notably, Curefoods is also facing criminal and food safety cases due to poor hygiene and substandard food at some of its outlets. Further, its subsidiary, Fan Hospitality, is also under the scanner in southern states for use of expired ingredients, lack of licences, and alleged child labour violations.
Founded in 2020 by former Flipkart executive Ankit Nagori, Curefoods is a cloud kitchen startup working on house of brands model. It operates over 500 cloud kitchens and 60+ offline outlets across around 40 cities, running more than 20 brands such as EatFit, CakeZone, Nomad Pizza, Sharief Bhai and Frozen Bottle.
On the financial front, the company’s operating revenue rose 27.4% to INR 745.8 Cr in the year ended March 2025 from INR 585.2 Cr in FY24. Its net loss declined by a marginal 1.6% to INR 170 Cr during the year under review from INR 172.6 Cr in FY24.
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