Temasek seeks CCI nod for investment in Rebel Foods

Singaporean sovereign fund Temasek is seeking the Competition Commission of India’s (CCI) approval for a significant investment in Rebel Foods, the parent company of Faasos and Behrouz Biryani.

On August 26, ET had reported that Temasek is in advanced discussions to lead an investment of $100-150 million in Rebel Foods.

The deal will be a mix of both primary and secondary share sales, with a nearly flat valuation compared to its previous round nearly three years ago.

The secondary sale is likely to be at a lower valuation of around $700 million. US-based Coatue and homegrown fund Lightbox are expected to partially divest their stakes in this funding round.

In October 2021, the Mumbai-based firm turned unicorn following a $175-million round led by sovereign wealth fund Qatar Investment Authority (QIA), valuing it at $1.4 billion.

Cloud kitchen brands have been seeing steady growth and are expanding their presence offline through their own or franchise stores. Many new-age, online-first brands are expanding offline to acquire new users as venture funds are also backing consumer brands with retail presence across the food and beverage sector.

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, the firm has 450 kitchens across 70 cities, with its brands available in around 10 countries, including the United Arab Emirates (UAE), Saudi Arabia and the UK.

According to the unicorn, it is aiming to go public in the next few years.

It also owns brands like Oven Story Pizza, Mandarin Oak, Firangi Bake, and Sweet Truth. EatSure is its own platform for ordering, under which it also runs offline outlets and plans to open more.

According to a recent National Restaurant Association of India (NRAI) report, the cloud kitchen sector saw a growth of 30-40% during 2019-24, and is expected to grow at 35.2% for the next four years.