Temasek leads $210 million funding in Rebel Foods

Singapore’s sovereign fund Temasek led a $210 million (about Rs 1,782 crore ) funding round in Mumbai-based Rebel Foods, parent of Faasos, Behrouz Biryani and other cloud kitchen brands, according to a statement from the company.

Rebel Foods said the funding was a mix of primary and secondary share sales, with its existing investors partially selling their stakes in the firm. Existing investor Evolvence also participated in the round.

ET first reported on August 26 about Temasek’s plan to acquire a stake in Rebel Foods. The transaction closed at a flat valuation, as reported by ET. In October 2021, Rebel Foods became a unicorn following a $175 million funding round led by Qatar Investment Authority (QIA), the country’s sovereign wealth fund.

The newly raised capital will be used for expanding Rebel Foods’ footprint and strengthening its platform by enhancing its portfolio of brands, the company said. Existing shareholders, US-headquartered Coatue and Mumbai-based fund Lightbox, and other investors partially sold their stakes in the financing, the majority of which was secondary funding.

In a secondary share sale, money changes hands between two investors and the capital doesn’t go to company coffers. The Rebel Foods deal is one of the largest late-stage deals this year with the majority in secondary funding. Lenskart, PhysicsWallah, Purplle and Healthkart are among the firms where large secondary fundings have taken place this year as part of the broader funding rounds.

“We are honoured to have Temasek join us on our journey, alongside the continued trust of Evolvence. This funding reinforces our vision to keep strengthening our platform, enhancing our portfolio of brands, scaling our omnichannel presence, and driving operational excellence globally,” said Jaydeep Barman, cofounder and CEO of Rebel Foods.

Started in 2011 by Barman and Kallol Banerjee, Rebel Foods plans to float an initial public offering by 2026.
Rebel Foods’ brands include Oven Story Pizza, Lunchbox, The Good Bowl and Sweet Truth. It also runs offline outlets under the EatSure brand and holds master franchise rights for Wendy’s India. The company operates more than 450 kitchens across 70 cities in India and has expanded into overseas markets such as the UAE and the UK.

The funding round at Rebel Foods comes at a time when cloud kitchen brands have seen moderate growth and are expanding offline through own or franchise stores. Flipkart founder Binny Bansal-backed Curefoods has raised Rs 500 crore in two tranches this year.

Early-stage food and beverages brands are also in demand from venture investors with multiple companies having raised funding in the recent months.

According to a recent National Restaurant Association of India report, the growth in the cloud kitchen sector during 2019-2024 ranged between 30-40%, while the outlook for the next four years is 35.20%. This is much higher than quick service restaurants, cafes, casual dining, fine dining and other segments in the food sector.