Chennai: Leading start-ups that operate cloud kitchens mopped up around $600 million in funding in the past three years and close to $1 billion since their inception. Despite impressive revenue growth, profitability remains a challenge for many cloud kitchen start-ups.
According to reports, the estimated size of the cloud kitchen market would touch $3 billion by 2024. Top start-ups operating in the segment mopped up around $600 million in funding in the past three years and close to $1 billion since their inception, according to TheKredible.
Among the top cloud kitchen start-ups, Rebel Foods has a topline of around Rs 1200 crore in FY23. It is the only unicorn in the space. The Peak XV Partners-backed company alone raised over $535 million till date whereas Curefoods scooped up around $170 million Binny Bansal’s Three State Ventures and others. In December 2023, Kitchens@ raised $65 million from London-based private equity firm Finnest and acquired Swiggy’s cloud kitchen’s business ‘Access Kitchens’. EatClub raised around $75 million, according to Entrackr.
Rebel Foods’ revenue from operations grew 39.2 per cent to Rs 1,195 crore in FY23 from Rs 858.6 crore in FY22. Curefoods and EatClub follow closely, with revenues exceeding Rs 300 crore each. Biryani By Kilo also claims a revenue of around Rs 300 crore in FY23. However, beyond these frontrunners, no other brands have crossed the Rs 100 crore revenue mark as of March 2023.
Losses too have been widening in the space as cost of materials and employee benefit costs have gone up. Rebel Foods’ losses went up nearly 23 per cent to Rs 656.5 crore during FY23. Curefoods’ bottom line jumped 4.7X to Rs 342.7 crore while EatClub’s losses rose 53.8 per cent to Rs 69 crore during the period. Kitchens@ saw losses of Rs 27.3 crore, Biryani Blues Rs 15.42 crore, FreshMenu Rs 10.15 crore, HOI Foods Rs 1.23 crore, and Dil Foods Rs 0.9 crore.
