Temasek seeks CCI approval to buy stake in foodtech firm Rebel Foods

Singapore's sovereign wealth fund Temasek Holdings has sought approval from the Competition Commission of India (CCI) for acquiring a stake in foodtech company Rebel Foods.

Temasek Holdings, through its arm Jongsong Investments Pte, is acquiring a stake in Rebel Foods -- which owns Faasos, Behrouz Biryani, Oven Story and other cloud kitchens.

"The proposed transaction entails the subscription of certain compulsorily convertible preference shares and the acquisition of equity share capital of the Rebel Foods Pvt Ltd (Target)," said a notice filed with the CCI on October 11.

The proposed transaction is in the nature of an acquisition of shares, voting rights and falls under the Competition Act, 2002, Temasek said in the notice.

 

"...transaction does not give rise to any competition law concerns irrespective of the manner in which the markets are defined," it added.

However, to help fair trade regulator CCI in its assessment of the proposed transaction, Temasek has identified several key markets where horizontal overlaps were significant such as market for organised food services in India and in each overlapping city.

Last month, Rebel Foods, the cloud kitchen startup, was in talks to raise funds in a range of $100-150 million in a fresh round led by Temasek.

In August, Rebel Foods reported narrowing of its consolidated loss to Rs 378.21 crore in FY24. The company's revenue from operations rose 18.8 per cent to Rs 1,420.24 crore in the financial year ended March 2024.

In FY23, the company's net loss was Rs 656.55 crore, while its revenue stood at Rs 1,195.22 crore. Rebel Foods's other income in FY24 was Rs 65.29 crore, up 2.81 per cent year on year. Its total income was 18 per cent higher at Rs 1,485.53 crore.

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods is the world's largest internet restaurant company, having over 450 kitchens across 70 cities.

It owns brands such as Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, SLAY Coffee, Sweet Truth, and Wendy's, among others. Rebel Foods currently operates over 45 brands across multiple countries.

Further, Rebel Foods has been expanding into offline stores as it looks to tap a growing audience base and increase revenue streams. The company competes with Binny Bansal-backed Curefoods and Tiger Global-funded Eatclub, among others.