CCI Approves KKR's Proposal to Acquire Stake in Rebel Foods, Strengthening Food-Tech Investment

The Competition Commission of India (CCI) has given the green light to KKR, a global investment firm, for acquiring a stake in Rebel Foods. KKR, based in the US, will make this acquisition through its affiliate, Royce Asia Holdings II Pte. The deal involves purchasing equity shares and compulsorily convertible preference shares of Rebel Foods on a fully diluted basis through a secondary purchase.

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Rebel Foods, established in 2011 by Jaydeep Barman and Kallol Banerjee, operates 450 kitchens across ten countries, including India, Indonesia, the UK, and the UAE. The company owns brands like Faasos, Behrouz Biryani, and Oven Story. There are no overlapping or complementary business activities between Royce Asia Holdings II and Rebel Foods in India. Hence, the market impact is considered negligible.

Green Channel Route Approval

The transaction is being processed under the green channel route. This means it is automatically approved upon notification to the CCI if there is no risk of adverse competition effects. This route simplifies approval for transactions that do not threaten market competition.

Reports last week indicated that Rebel Foods was negotiating to secure additional funding of USD 50-70 million from KKR. This funding round values Rebel Foods at USD 800-860 million. The company faces competition from Curefoods, backed by Binny Bansal, and Eatclub, funded by Tiger Global.

Last month, CCI also approved Singapore's sovereign wealth fund Temasek Holdings to acquire a stake in Rebel Foods. This indicates growing interest from investors in the food-tech sector. The sector continues to attract significant investments due to its growth potential and innovative business models.

The acquisition by KKR is part of a broader trend of increased investment in India's food-tech industry. As companies like Rebel Foods expand their operations globally, they continue to draw attention from major investors seeking opportunities in this dynamic market.