IPO-bound cloud kitchen operator Rebel Foods on Thursday announced its series G funding round of $210 million in a mix of primary and secondary share sales. The round was led by Singapore’s Temasek Holdings with participation from existing investor Evolence along with exit to certain (undisclosed) investors, the company said in a statement.
Rebel Foods operates brands including Faasos, Behrouz Biryani, Oven Story Pizza, Lunchbox, The Good Bowl, Sweet Truth, Wendy’s, and more in more than 70 cities in India and is expanding into international markets such as the UAE and the UK.
The company was last valued at $1.4 billion, as of August 2023 and had last raised $13 million in debt in May this year from Alteria Capital and Innoven Capital, as per data from Tracxn. The latest round brings the total equity infusion into the company to around $726 million.
Speaking on the investment, Jaydeep Barman, Co-founder and CEO, Rebel Foods said, “This funding reinforces our vision to keep strengthening our platform thereby enhancing our portfolio of brands, scale our omnichannel presence, and drive operational excellence globally.”
The company had reported Rs 378.21 crore in consolidated loss in FY24 from Rs 656 crore in FY23 while operating revenue has increased by 18.8 per cent to Rs 1,420.24 crore in FY24 from Rs 1,195.22 crore in FY23.
Rebel Foods is reportedly planning its initial public offering in the next two years. Earlier this year, the company had also told FE that it is looking to have a presence in 120 cities in the next two years, particularly Tier II cities.
The cloud kitchen market in the country is likely to grow from $800 million in FY22 to $1.9 billion in FY26, scaling up at a compound annual growth rate (CAGR) of 24 per cent, as per a report by Wazir Advisors.
Also, with the growth of the 10-minute delivery model or quick commerce market, the cloud kitchen market in India aligns with consumer demand for quick meals, enabling them to cater to a growing segment of ready-to-eat options. Moreover, hyperlocal setups closer to residential areas can also enhance efficiency and reduce delivery times.