Over the past two years, two remarkable entrepreneurs, Jaydeep Barman and Kallol Banerjee, have revolutionized the Indian food industry with their internet-based restaurant venture. Their success has been so remarkable that even well-established chains like Domino’s have yet to catch up.
It all began in 2011 when they founded Fasos in Pune, initially focusing on selling rolls. However, they soon realized that relying solely on rolls might not be sustainable for substantial profits. As a result, they decided to introduce pizzas to their menu. However, the initial response to their pizzas was underwhelming, while their roll sales remained strong.
This turning point led them to a crucial insight that transformed Rebel Foods’ trajectory forever. They realized that successful food brands are usually associated with a specific cuisine; for instance, McDonald’s is known for burgers, KFC for fried chicken, and Domino’s for pizza. So, they decided to rebrand their pizza venture as Oven Story, and this simple change led to an instant boost in sales.
With this newfound approach, they didn’t stop at just pizza and roll brands. Instead, they expanded their reach by launching 15 distinct brands, each catering to different cuisines like Behrouz Biryani, Mandarin Oak for Chinese, and more. The intriguing aspect of their business model is that they operate solely through Cloud Kitchens, without any physical restaurant locations. By setting up their kitchens in cost-effective areas, they have managed to streamline operations and sell their diverse range of products exclusively online.
Thus, it led to the formation of not only India’s but the world’s largest internet restaurant chains that became a billion dollar company. Here’s the story of the man behind the success story of this extraordinary startup…
Journey of Jaydeep Barman
Jaydeep’s passion for food and entrepreneurship drove him to create a revolutionary concept that would forever change the restaurant industry in India. From humble beginnings as Faasos, Jaydeep co-founded Rebel Foods, now the largest internet restaurant company globally.
Born and raised in Kolkata, Jaydeep Barman’s love for food was deeply ingrained in him. After completing his engineering degree in Kolkata, he pursued his MBA from the prestigious IIM Lucknow, setting the stage for his entrepreneurial aspirations.
In 2001, he joined the electronics company Onida and was posted to North Bengal, where he tried to sell television sets in a region plagued by power cuts. In 2002, he joined a Pune-based startup, Brainvisa Technologies, which sold e-learning management systems to companies. In 2005, Barman enrolled at the INSEAD business school, going on to join the consulting firm McKinsey in London in 2006. By 2010, he was an associate partner. He took a six-month sabbatical that year, returning to India to raise his daughter here. By then, he knew how to build businesses and decided to take Faasos pan India. The experience planted the seeds of entrepreneurship.
But he began missing home food. He returned to Pune when his new-found interest in entrepreneurship and a longing for the flavours of Kolkata birthed a business idea. He partnered with a co-worker, Kallol Banerjee, also from Kolkata, and tried to recreate rolls from the streets of their home city in a quick-service restaurant (QSR) format, inspired by the success of McDonald’s and Domino’s, which had launched here in the mid-1990s.
However, his heart was set on creating something innovative and impactful, and food remained his foremost passion. The idea of Faasos was conceived during his time away from home, where he deeply missed the flavors of the Kathi rolls he grew up with. This longing, coupled with his desire to tap into the vast potential of the food market, led him to explore entrepreneurship in the F&B industry.
The Faasos-Foundation: An evolution of vision
In 2011, Jaydeep Barman, along with his friend and colleague from IIM Lucknow, Kallol Banerjee, launched Faasos in Pune. Initially focusing on selling rolls, they encountered a setback when their pizza venture failed to take off. However, this obstacle turned out to be a turning point for the duo. Recognizing that successful food brands were associated with specific cuisines, they relaunched their pizza line under the brand name “Oven Story,” witnessing an immediate boost in sales.
The cloud kitchen revelation: revolutionizing the game
Embracing the power of technology, Jaydeep and Kallol decided to tap into the burgeoning trend of online food delivery systems. Realizing that cloud kitchens provided a cost-effective and efficient model to deliver food to customers, they embarked on a transformational journey. In 2014, Rebel Foods (formerly Faasos) entered the cloud kitchen business, leveraging its existing kitchen infrastructure while expanding its online presence.
Expansion of a culinary empire: from Behrouz Biryani to Mandarin Oak
The success of Behrouz Biryani, launched in 2016, demonstrated the potential of the cloud kitchen model. It paved the way for a string of new brands, including Mandarin Oak for Chinese cuisine, Sweet Truth for desserts, The Good Bowl for bowl meals, and The Biryani Life for single-serve biryani, among others. Rebel Foods’ multi-brand approach enabled them to cater to diverse customer preferences while streamlining operations and increasing revenue.
Investments and scaling new heights
Jaydeep Barman’s strategic vision and Rebel Foods’ exponential growth caught the attention of investors worldwide. The company successfully raised several rounds of funding, with notable investments from Sequoia Capital, Lightbox Ventures, ru-Net, and others. This financial backing empowered Rebel Foods to scale its cloud kitchen operations rapidly across India and expand its presence to international markets, including the UAE, UK, Singapore, Malaysia, Thailand, Bangladesh, Hong Kong, and the Philippines.
Kallol Banerjee, co-founder
Kallol Banerjee is one of the co-founders of Rebel Foods, playing a pivotal role in its success. He pursued his higher education in Mechanical Engineering from Jadavpur University and later completed his MBA from the prestigious IIM, Lucknow. Before embarking on the entrepreneurial journey with Jaydeep Barman, Kallol Banerjee gained valuable professional experience by working at Bosch in Singapore
The ever-growing cloud kitchen phenomenon
In the financial year 2021-2022, Rebel Foods, a cloud kitchen chain supported by Sequoia, experienced a significant surge in revenue, which rose by 2.1 times, reaching Rs 859 crore. However, the company also faced challenges as its losses increased by 55% during the same period, amounting to Rs 564 crore compared to Rs 364 crore in the preceding fiscal year. This rise in losses was primarily attributed to a substantial increase in expenses, which surged by 86% and amounted to Rs 1,429 crore. The surge in expenses had an impact on the company’s profitability, and they are likely to be closely monitoring their financial strategies to maintain sustainable growth in the competitive market.
As Rebel Foods continues to redefine the restaurant industry, Jaydeep Barman’s vision has opened doors for countless entrepreneurs seeking to explore the world of cloud kitchens. With a valuation of 1.4 billion and over 450 cloud kitchens in multiple countries, the company stands as a testament to the power of combining culinary expertise with technology.
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