Technology

Curefit co-founder Ankit Nagori swaps equity for larger ownership in Eatfit

Ankit Nagori, cofounder of Curefit, has swapped his equity in the health and fitness startup for a larger ownership in CureFoods, which runs its cloud kitchen business Eat.Fit, according to people familiar with the matter.

While Nagori will continue on Curefit’s board and be involved with the strategic direction of the company he cofounded in 2016, operationally, he will be focused on running Eat.Fit. He will also retain some stake in Curefit after the transaction.

“There has been an equity swap where Ankit Nagori has increased his ownership significantly in CureFoods. Curefit will continue to be a significant stakeholder in CureFoods. Eat.Fit will continue to sell on Curefit app and also will provide F&B services at Cult centres,” Curefit said in a statement.

Prior to the transaction, Nagori’s stake in Curefit stood at 7.6%, or Rs 420 crore, regulatory filings showed.

“This has translated to about a 60-80% stake in CureFoods, with the rest owned by Curefit,” said one person aware of the matter. Curefit did not comment on the shareholding in CureFoods.

Earlier this month, Curefit carved out its food business Eat.Fit as an independent entity and said it plans to raise funds separately. As a part of the spinoff, there was a cash infusion in CureFoods, which will support it for three years.

“The aim is to make CureFoods profitable in the next 18-24 months,” the company said in a statement.

CureFoods, which operates 12-13 kitchens in Bengaluru and Coimbatore, plans to focus on recovering market share in 2021. The company has about 40 people in the central team, which is similar to its strength prior to the spinoff.

“There is a lot of focus on improving product quality, lowering logistics costs, and introducing automation in kitchens. There will also be an omnichannel play where takeaway will become a part of the business model,” the company said in an emailed response to ET.

In June, Curefit closed a $ 120 million funding round in a mix of equity and debt, with new investors including Unilever Ventures, Epiq Capital, Innoven Capital and Kotak Mahindra Bank. The round was led by existing investors including Chiratae Ventures (formerly IDG Ventures), Accel Partners, Kalaari Capital and Oaktree Capital, valuing the startup at more than $ 550 million.

Nagori resigned from Flipkart in 2016 and founded Curefit with Mukesh Bansal. Even before raising capital, the duo seed-funded the company with $ 5 million of their own savings. The equity split between them was in the ratio 4:3 when the company was founded, with Bansal holding the majority.

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