Temasek, the Singaporean sovereign fund, is in advanced discussions to lead a $100-150 million investment in Rebel Foods, the parent company of brands like Faasos and Behrouz Biryani. This funding round will involve a mix of primary and secondary share sales, with the Mumbai-based unicorn maintaining a valuation similar to its previous round nearly three years ago.
The secondary sale, where existing investors partially sell their stakes to Temasek, is expected to occur at a lower valuation of approximately $700 million. This is a significant drop from the $1.4 billion valuation Rebel Foods achieved in October 2021 after a $175 million funding round led by the Qatar Investment Authority (QIA). US-based Coatue and India-based Lightbox, which hold 18.6% and 9.7% stakes in Rebel Foods respectively, are expected to partially divest their shares in this secondary sale. Temasek is expected to join as a new investor, with the potential involvement of other investors.
Rebel Foods, founded in 2011 by Jaydeep Barman and Kallol Banerjee, has grown to operate 450 kitchens across 70 cities, with its brands available in 10 countries, including the UAE, Saudi Arabia, and the UK. The company has been experiencing moderate growth and is expanding its presence offline through its own stores and franchises. Rebel Foods owns popular brands such as Oven Story Pizza, Mandarin Oak, Firangi Bake, and Sweet Truth. Additionally, it operates its own platform, EatSure, under which it also runs offline outlets and plans further expansion. The company has also secured master franchise rights for Wendy’s in India and holds a majority stake in the chocolate and dessert brand Smoor.
The cloud kitchen sector, where Rebel Foods is a key player, has been growing at a rapid pace. According to a recent report from the National Restaurant Association of India (NRAI), the cloud kitchen sector saw a growth rate of 30-40% from 2019-2024, with an expected growth rate of 35.20% over the next four years. This growth outpaces other segments in the food sector, including quick-service restaurants (QSRs), cafes, casual dining, and fine dining.
Temasek’s potential investment in Rebel Foods is part of a resurgence in large-scale, late-stage funding deals in the sector. This trend reflects the predictable growth Rebel Foods has demonstrated, along with the increasing prominence of its brands in the market. Rebel Foods is reportedly planning a public offering within the next couple of years, signaling further expansion and consolidation in the cloud kitchen industry.