KKR to invest US$50-75 million in Rebel Foods, valuing it at US$860 million

Private equity firm KKR will buy $50-75 million worth of Rebel Foods shares from existing investors, a person familiar with the matter said, valuing the startup at nearly $860 million as the Mumbai-based cloud-based company Shortly after the kitchen company announced the acquisition for $210 million. Thursday’s funding round was led by Singapore’s Temasek.

The deal will be a secondary deal, with existing investors Peak XV (formerly Sequoia Capital India and SEA) and U.S. investment firm Coatue selling some shares, said the people, who spoke on condition of anonymity.

“The valuation of the shares sold to KKR is 15% higher than what Temasek paid,” the person added.

Spokespeople for KKR and Peak XV declined to comment when contacted, while emails sent to Coatue remained unanswered.

Earlier on Thursday, Rebel Foods said in a statement that it had secured $210 million in Series G funding led by Temasek and with participation from existing investor Evolvence. The aforementioned person previously said that this round of financing reportedly valued the company at US$750 million.

Mint It was first reported in October last year that Temasek would acquire a 20-25% stake in Rebel Foods for US$180-200 million.

strategic expansion goals

The funding will enable the Jaydeep Barman-led company to expand its omni-channel presence and expand its brand portfolio, a company statement said. Avendus Capital is Rebel Foods’ exclusive financial advisor for this transaction.

“This funding reinforces our vision to continuously strengthen our platform to enhance our portfolio of brands, expand our omnichannel presence and drive operational excellence globally. As we enter our next phase of growth, we remain steadfast in our commitment to innovation, to grow sustainably and create lasting value for our customers and stakeholders,” Rebel Foods co-founder and CEO Jaydeep Barman said in a statement.

Founded in 2011 by Barman and Kallol Banerjee, Rebel Foods operates brands such as Behrouz Biryani, Oven Story and Faasos, competing with large fast-food chains and independent cloud kitchen operators. Currently, Rebel operates more than 450 cloud kitchens in 75 cities across India, the Middle East, North Africa, Indonesia and the UK. The company also manages 150 stores of Indian fast-food chain Wendy’s and operates eight stores in a food court format.

In FY24, the company’s operating income edged up to $1,420 crore from $1,195 crore in the previous year, while expenses were flat at $According to regulatory filings obtained by business intelligence platform Tofler, the figure is Rs 1,857 crore.

July, Mint Rebel Foods reportedly plans to invest $As dining out regains momentum post-pandemic, it is spending Rs 200 crore to expand its physical footprint, including its food court EatSure.

The move fits Rebel Foods’ broader strategy as it eyes a potential stock listing in fiscal 2026, marking a shift toward offline expansion as the post-pandemic cloud kitchen boom begins to wane in favor of in-store dining.

India’s food service market expected to nearly double $will reach US$9 trillion by the end of this century, higher than $Revenue currently stands at $5.5 trillion, driven by a growing customer base, increased spending and a surge in new restaurants, according to a report by Bain & Company and food aggregator Swiggy.

August, Mint The report said that as competition intensifies and costs rise, smaller “ghost kitchens” are re-evaluating their strategies. Many smaller businesses have adopted an omnichannel approach, both online and offline, and are now considering downsizing or merging with larger entities, underscoring the challenges even established players face in this evolving market. challenge.