Rebel Foods, the cloud kitchen giant behind Faasos and Behrouz Biryani, has received a $25 million investment from Qatar Investment Authority (QIA). The funds will be used to expand its physical restaurant and food court presence, marking a shift towards an omnichannel approach.
Mumbai: Rebel Foods, the operator of popular cloud kitchen brands Faasos and Behrouz Biryani, has secured a significant $25 million investment from the Qatar Investment Authority (QIA), valuing the company at $1.4 billion. This funding injection will primarily fuel the Temasek-backed company's strategic expansion into physical restaurants and food courts, signaling a key evolution for the cloud kitchen giant.
According to sources familiar with the development, Rebel Foods is aiming to establish a stronger omnichannel presence. The company plans to utilize the ₹200 crore investment to launch a select number of stores and restaurants in key markets like Mumbai, Pune, Bengaluru, and Delhi.
Rebel Foods declined to comment on the investment, and QIA is yet to respond to requests for comment.
The company's move to expand its physical footprint is expected to create competition for newer players and quick-commerce platforms. A significant portion of the new funding will be allocated to the expansion of EatSure, Rebel Foods' food court business.
EatSure has been a focal point for Rebel Foods, including a recent partnership with Wendy's in India. The company currently operates under 10 EatSure formats across various cities, offering a range of food options from biryani to pizza, cakes, and coffee. Rebel Foods intends to further expand this format in the coming years.
In addition to QIA's investment, Temasek Holdings invested $200 million for a 20-25% stake in Rebel Foods in October of the previous year. Certain existing investors, including Coatue Management, Lightbox, and Peak XV, sold portions of their stakes. Later, KKR acquired secondary stakes from these investors for an undisclosed sum.
Rebel Foods is reportedly considering an initial public offering (IPO) in the next 12-18 months. With the latest funding round, Temasek will emerge as the largest single non-founder shareholder in the company, while the founders will retain approximately 12% stake. QIA will hold around 9.9% stake.
Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods operates over 450 kitchens in more than 70 cities, with a portfolio of over 45 brands across multiple countries, including India, the United Arab Emirates (UAE), Saudi Arabia, and the UK. The company reduced its losses to ₹378 crore in FY24 from ₹657 crore the year before, driven by better margins and economies of scale across its portfolio. Its revenue from operations saw a modest rise to ₹1,420 crore in FY24, up from ₹1,195 crore the previous year, while expenses remained flat at ₹1,857 crore.
