Rebel Foods, which operates internet kitchen brand Faasos, has raised about $16 million (Rs 110.66 crore) in fresh funding from existing investors, including Lightbox Ventures II, Lightbox Expansion Fund and Sequoia Capital India Trust, according to documents sourced from business signals platform Paper.vc.
The investments are part of the Pune-based company’s series D1 financing round. Evolvence India Fund II and SCI Investments VI also participated in the round, the documents stated.
Founded in 2011, the firm whose income saw a 67.34% jump in the year to March 2018 from FY17, now runs 1,100 internet restaurants in 15 cities across India, from a mere 250 restaurnats two years ago. Income generated in FY18 stood at `149.04 crore as against `89.06 crore reported in FY17. Losses, however, remained elevated, decreasing only marginally to Rs 74.44 crore in FY18 compared to Rs 82.03 crore in FY17, revealed documents sourced from business intelligence platform Tofler.
Chief executive officer Jaydeep Barman claimed Rebel Foods was world’s largest delivery-only or internet restaurant company. Its strategy is to run multiple restaurants from the same cloud kitchen. The company that also owns brands such as Berhouz Biryani, OvenStory currently operates 176 cloud kitchens in 15 cities.
The firm’s industrial kitchens are strategically situated in locations that landlords struggle to rent.
This strategic step has helped the company spend three to five times less the market rate as rent. “Once a kitchen is built, we can continuously build multiple restaurant brands from that location. In the past 24 months, we have incubated and scaled seven restaurant brands to more than 100 locations, without incurring any additional expense,” Barman said in a blog last year.
The company has, so far, raised over $100 million, according to data sourced from Crunchbase.
In 2017, the firm had raised close to $6.4 million from Lightbox Ventures II, Lightbox Expansion Fund, Sequoia Capital India and others. In 2015, it had raised around $30 million.
Reportedly, the firm is scouting for funds to the tune of $100 million as it looks to expand overseas. The company said it was “gearing up for installing our its 1,000 kitchens across India and then spreading our wings globally”.
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Investors are pouring in funds in India’s food-tech space. While Swiggy walked away with a staggering $1 billion in fresh funding, led by South African internet and media group Naspers, in December that valued the firm at an estimated $3.3 billion, Zomato recently raised $105 million from investors, led by Germany-based Delivery Hero SE and US-based Glade Brook Private Investors. Zomato raised $410 million in funding in CY2018 from Ant Financial, an affiliate of China’s Alibaba Group.