Curefoods, which operates the ‘EatFit' cloud kitchen, is in discussions to raise $30 million in an equity fundraising round headed by Accel and Chiratae.

The money will be used by the Iron Pillar-backed company to buy almost half a dozen smaller companies in the industry, as well as for additional inorganic development opportunities, they said.

“Given the inbound interest from investors, the company is likely to raise an extended Series B round, taking the total funding in the round to $75 million,” said a person aware of the company's plans. “The remaining fund raise will be at a higher valuation,” he said.

According to sources, Curefoods is also raising $10 million in loans from venture debt firms.

This funding comes after the company received $13 million in August from investors led by Iron Pillar as part of a series A deal. Last year, health and fitness firm Curefit spun off its health food vertical EatFit as a separate company to address growing demand from cloud kitchen sector.

EatFit, Yumlane, Aligarh House Biryani, and Masalabox are among the brands operated by Curefoods, which began operations in 2020. It operates 25 kitchens in four Indian cities. In recent months, the business has acquired and incubated a number of cloud-kitchen companies. “The company is doubling its revenues quarter-on-quarter,” said another source familiar with the situation.

MasalaBox, Paratha Box, Cake Zone, Ammi's Biryani, Hyderabad-based pizza companies Olio and Crusto's, and Bengaluru's Chaat Street were among the seven new direct-to-consumer food brands bought by the company last month.

In the cloud kitchen area, there are numerous models functioning, including some that are acquiring established brands to lower the cost of gaining customers, a space in which Curefoods operates.

Curefoods has acquired seven brands and wants to acquire another 25. In an earlier interview, Nagori said the company is looking for a combination of smaller brands with an annual revenue run rate of Rs 8-10 crore and those with the ability to develop nationwide and become Rs 100-crore enterprises.