Temasek Holdings Receives Approval from the CCI to Purchase Share in Rebel Foods

The proposed purchase of a share in the foodtech startup Rebel Foods by Singapore's Temasek Holdings was approved by the Competition Commission of India (CCI) on November 26. Rebel Foods, the company behind Faasos, Behrouz Biryani, Oven Story, and other cloud kitchens, is being acquired by Temasek Holdings through its subsidiary Jongsong Investments Pte.

 According to a release from the regulator, the proposed combination calls for Jongsong Investments Pte Ltd to purchase equity shares of Rebel Foods Private Ltd (Rebel Foods) and subscribe for certain compulsorily convertible preference shares.

Rebel Foods Hitting the IPO

Rebel Foods is considering going public in the upcoming 12 to 18 months. Prior to that, it is reported that early investors, such as Coatue Management, Lightbox, and Peak XV Partners, are seeking partial exits. It is anticipated that Jongsong Investments will purchase their combined 20–25% shareholding for between $180 and $200 million. Temasek will become Rebel Foods' biggest stakeholder after the deal.

At the moment, the Qatar Investment Authority owns roughly 10% of the firm, while the founders share 12%. Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, and Wendy's are just a few of the quick-service restaurant (QSR) brands that Rebel Foods, which was founded in 2011 by Kallol Banerjee and Jaydeep Barman. Selling food products through its own cloud kitchens and third-party kitchens is the startup's main source of income. Through agreements, it also generates revenue from royalties and delivery fees.

Financial Report Card of Rebel Foods

Thanks to a rise in its top line and cost discipline, Rebel Foods was able to reduce its net loss from INR 656.5 Cr in the previous fiscal year to INR 378.2 Cr in the fiscal year 2023–24 (FY24), a 42% decrease. From INR 1,195.2 Cr in FY23 to INR 1,420.2 Cr in FY24, operating revenue increased by 19%. The development occurs as early investors are trying to sell some shares in order to squeeze out profits, while a number of late-stage Indian businesses are seeing secondary share sales before their scheduled IPOs. Acko, Urban Company, and Lenskart are among the startups that have experienced secondary transactions, which have resulted in partial exits and multi-bagger returns for certain early investors.

With more than 450 kitchens spread across 70 cities, Rebel Foods is the biggest online restaurant operator in the world. At the moment, Rebel Foods has more than 45 brands across several nations.

In addition, Rebel Foods has been opening physical locations in an effort to reach a wider audience and generate more income. Among its rivals are Tiger Global-funded Eatclub and Curefoods, which is supported by Binny Bansal.

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StartupTalkyNitin Konde