Cloud kitchen company Rebel Foods announces $10 million ESOP

Rebel Foods CEO Jaydeep Barman

Cloud kitchen company Rebel Foods has announced a $10 million employee stock ownership plan (ESOP) liquidation program for eligible current and former employees.

Startups issue ESOPs as a tool to attract and retain talent. It has become all the more significant in the current context, amid the unprecedented war for talent.

Through this programme, Rebel Foods’ 150+ current and former employees can liquidate the ESOPs periodically without terms and conditions. The opportunity can be availed once in a one-year period. The company will set aside a pool of funds every year to enable such liquidation, said the firm in a statement.

This comes at a time when cloud kitchens have gained traction as the pandemic forced people to stay indoors and order food online. Now, cloud kitchen brands are looking to broaden their footprint across the country.

All those who had vested options by October 31, 2021, were eligible for the liquidation. Rebel Foods is looking at expansion and growth trajectory and will be infusing $150 million for strategic brand investments and acquisitions in India and globally.

Founded in 2011, Rebel Foods, which turned unicorn last year, has built brands such as Faasos, Behrouz Biryani and Oven Story, Mandarin Oak, The Good Bowl, SLAY Coffee, Sweet Truth, and Wendy’s. Its brand Faasos has an 80 percent repeat rate in India and the brand also added 50 cities in the last quarter, apart from venturing into new countries. Currently, 30 percent of Rebel Foods’ business is from outside India.

“The USD 10Mn ESOP program will offer significant wealth creation opportunities for those who have joined us in our mission of building and scaling a platform for great quality brands across all customer food missions in every neighbourhood in the world. We will continue creating similar opportunities in the future while rewarding our employees for their hard work, contribution, and belief in Rebel’s vision and missions, ” said Ankur Sharma, Co-founder of Rebel Foods.

Over the past year, multiple startups in India including Cred, Swiggy, Byju's, Meesho, BharatPe, UpGrad, among others announced ESOP buybacks cumulatively worth $440 million, an eight-fold jump compared to the previous year, according to data from Entrackr.