Temasek Holdings Requests Approval from CCI for Stake in Rebel Foods

Temasek Holdings, Singapore's sovereign wealth fund, has approached the Competition Commission of India (CCI) for approval to acquire a stake in Rebel Foods. Through its subsidiary Jongsong Investments Pte, Temasek plans to invest in Rebel Foods, which operates brands like Faasos and Behrouz Biryani. The transaction involves subscribing to convertible preference shares and acquiring equity in Rebel Foods Pvt Ltd.

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The acquisition falls under the Competition Act, 2002, as it involves shares and voting rights. Temasek stated that the transaction does not pose competition law issues regardless of market definitions. To assist CCI's evaluation, Temasek identified key markets with significant overlaps, such as organised food services in India and specific cities.

Rebel Foods' Financial Performance

In August, Rebel Foods reported a reduced consolidated loss of Rs 378.21 crore for FY24. The company's revenue from operations increased by 18.8% to Rs 1,420.24 crore for the financial year ending March 2024. In FY23, Rebel Foods had a net loss of Rs 656.55 crore with revenue at Rs 1,195.22 crore.

Rebel Foods' other income for FY24 was Rs 65.29 crore, marking a 2.81% increase year-on-year. The total income rose by 18% to Rs 1,485.53 crore during the same period.

Expansion and Market Presence

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods is the largest internet restaurant company globally with over 450 kitchens in more than 70 cities. It owns brands including Faasos, Behrouz Biryani, Ovenstory Pizza, and SLAY Coffee among others.

Rebel Foods is expanding into offline stores to reach a broader audience and diversify revenue streams. The company competes with Curefoods, backed by Binny Bansal, and Eatclub, funded by Tiger Global.

Last month, Rebel Foods was negotiating to raise USD 100-150 million in a new funding round led by Temasek. This investment aims to support Rebel Foods' growth and expansion plans across various markets.

Rebel Foods currently operates over 45 brands across multiple countries. Its diverse portfolio includes Sweet Truth and Wendy's among others, catering to a wide range of culinary preferences.

The proposed investment by Temasek signifies confidence in Rebel Foods' business model and growth potential. As the foodtech industry evolves, strategic investments like these play a crucial role in shaping market dynamics.