Temasek Holdings seeks CCI approval for stake acquisition in Rebel Foods

The company has expanded its footprint to include offline stores, aiming to reach a wider audience and diversify its revenue streams.

Temasek Holdings, Singapore’s sovereign wealth fund, has filed for approval from the Competition Commission of India (CCI) to acquire a stake in foodtech company Rebel Foods, which operates popular cloud kitchen brands such as Faasos, Behrouz Biryani, and Oven Story, according to a report by PTI. 

The proposed acquisition carried out through Temasek’s subsidiary Jongsong Investments Pte, involves the subscription of compulsorily convertible preference shares and the purchase of equity share capital in Rebel Foods Pvt Ltd. According to a notice filed with the CCI on October 11, the transaction qualifies as an acquisition of shares and voting rights under the Competition Act of 2002, the PTI report added.

To assist the CCI in evaluating the proposed deal, Temasek has highlighted key markets where horizontal overlaps are significant, particularly in organized food services within India and in overlapping cities.

Rebel Foods, known for its innovative cloud kitchen model, was recently in talks to raise between $100-150 million in funding led by Temasek. In its financial results for FY24, the company reported a narrowed consolidated loss of Rs 378.21 crore, with an 18.8 percent increase in revenue from operations, totalling Rs 1,420.24 crore. This marks an improvement from FY23, when the net loss was Rs 656.55 crore, and revenue stood at Rs 1,195.22 crore. Rebel Foods also recorded an increase in other income, rising to Rs 65.29 crore in FY24, which represents a 2.81 percent year-on-year growth.

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods has grown to become the world’s largest internet restaurant company, operating over 450 kitchens across 70 cities and managing more than 45 brands in multiple countries. The company has expanded its footprint to include offline stores, aiming to reach a wider audience and diversify its revenue streams. Rebel Foods faces competition from firms like Curefoods, backed by Binny Bansal, and Eatclub, funded by Tiger Global.