Temasek Holdings is reportedly in advanced talks to spearhead a significant investment ranging from $100 to $150 million in Rebel Foods. This transaction will involve a combination of primary and secondary share sales, reflecting a valuation similar to its last funding round nearly three years ago.
The Singaporean sovereign fund is currently pursuing the necessary approval from the Competition Commission of India (CCI) for this noteworthy investment in Rebel Foods, the parent company of popular brands such as Faasos and Behrouz Biryani.
While the deal will encompass both primary and secondary sales, the secondary sale is anticipated to be valued at approximately $700 million, which is lower than its previous valuation. Notably, US-based Coatue and local investor Lightbox are expected to reduce their stakes in this round of funding.
In October 2021, Rebel Foods reached unicorn status after raising $175 million in a funding round led by Qatar Investment Authority (QIA), achieving a valuation of $1.4 billion.
The cloud kitchen segment has experienced consistent growth and is increasingly establishing a physical presence through both company-owned and franchised outlets. Many innovative, online-first brands are venturing offline to attract new customers, supported by venture capital focused on consumer brands with a retail footprint in the food and beverage sector.
Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods operates 450 kitchens across 70 cities and its brands are available in around ten countries, including the United Arab Emirates, Saudi Arabia, and the United Kingdom.
The company has set its sights on going public within the next few years and owns several other brands, such as Oven Story Pizza, Mandarin Oak, Firangi Bake, and Sweet Truth. Additionally, it operates its own ordering platform, EatSure, which includes offline outlets and plans for further expansion. A recent report by the National Restaurant Association of India (NRAI) indicates that the cloud kitchen industry grew by 30-40% from 2019 to 2024, with an expected growth rate of 35.2% over the next four years.