Curefoods in talks to buy Krispy Kreme from Dubai’s Landmark Group

Curefoods is in talks with Dubai's Landmark Group to acquire the rights to sell the brand of doughnuts, Krispy Kreme, in India ahead of its upcoming funding round, two people with direct knowledge of the matter told YourStory.

The negotiations may also lead to the Landmark Group investing in Curefoods' ongoing $40 million funding round, said the people mentioned above, requesting anonymity as the discussions are private. Curefoods’ existing backer Chiratae Ventures has committed around $15 million in the funding round, which will happen at a valuation of $450-500 million, according to the sources. Besides, Flipkart Co-founder Binny Bansal, who is also an existing investor in the company, is expected to participate in the round.

The deal discussions are still in the early stages and some contours could change. Curefoods declined to comment, while Landmark Group and Chiratae Ventures did not immediately respond to queries sent by YourStory.

The Indian operations of Krispy Kreme, an 87-year-old US-based brand known for its coffee and doughnuts, are currently handled by Citymax Hotels India Pvt Ltd, a subsidiary of the Landmark Group. Landmark Group, founded in 1973, runs retail brands in the Middle East. The group also owns and operates multi-brand retail outlet Lifestyle, as well as apparel and fashion brands Max and Splash.

“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 two people quoted above, who is privy to the deal negotiations. Krispy Kreme currently has stores in Chennai, Bengaluru, and Hyderabad in India.

“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 person added.

Curefoods' negotiations to acquire Krispy Kreme coincides with the company's rapid expansion to create a house of brands model, capitalising on the swift growth of the eating-out segment following the pandemic. Curefoods was a pure-play cloud kitchen platform before evolving into an omnichannel business.

“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 person quoted above.

“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 person added.

Curefoods was founded in 2020 by Ankit Nagori, a former executive at Flipkart and co-founder of Cult.fit. So far, Curefoods has raised over $120 million in equity funding from investors such as Accel, Sixteenth Street Capital, and Iron Pillar. The company houses multiple brands in its porftolio, including Eatfit, Chaat Street, Millet Express, Olio Pizza, Sharief Bhai, and Nomad Pizza. In a social media post Nagori said that four of the company's brands had hit the annual revenue run rate of approximately Rs 100 crore each in July 2024.

The copy was updated to reflect additional information.