chennai: The leading cloud kitchen startup has raised about $600 million in funding over the past three years and nearly $1 billion since its inception. Despite impressive revenue growth, profitability remains a challenge for many cloud kitchen startups.
According to reports, the estimated size of the cloud kitchen market will reach $3 billion by 2024. Top startups operating in the field have raised about $600 million in funding over the past three years, and nearly $1 billion since their inception. The Credible.
Rebel Foods, one of the top cloud kitchen startups, had sales of around Rs 120 billion in FY23. It is the only unicorn that exists in the universe. Companies backed by Peak XV Partners alone have raised more than $535 million to date, while Curefoods has raised about $170 million with Binny Bansal's Three State Ventures and others. In December 2023, Kitchens@ raised $65 million from London-based private equity firm Finnest to acquire Swiggy's cloud kitchen business Access Kitchens. EatClub has raised about $75 million, according to Entrackr.
Rebel Foods' operating revenue increased by 39.2% from Rs 858.6 million in FY22 to Rs 1,195 million in FY23. Curefoods and EatClub followed suit, with revenues of over Rs 300 crore each. Biryani By Kilo also claims a revenue of around Rs 300 crore in FY23. However, apart from these heavy hitters, there is no brand whose revenue has crossed his Rs 100 crore mark as of March 2023.
Losses are increasing in this sector as material costs and employee benefits costs soar. Rebel Foods' losses increased by nearly 23 per cent to Rs 656.5 crore during FY23. During the same period, Cure Foods' bottom line increased 4.7 times to 342.7 million rupees, while Eat Club's loss increased 53.8% to 69 million rupees. Kitchens@ posted a loss of Rs 2.73 billion, Biryani Blues Rs 15.42 billion, FreshMenu Rs 10.15 billion, HOI Foods Rs 1.23 billion and Dil Foods posted a loss of Rs 0.9 billion.
