Temasek to Buy Stake in Rebel Foods for $180-200 Million as Cloud Kitchen Giant Prepares for IPO

Temasek is set to acquire a stake in Rebel Foods, the world’s largest cloud kitchen operator, for $180-200 million. The stake will be bought from existing investors Coatue Management, Lightbox, and Peak XV. This comes as Rebel Foods, known for popular brands like Faasos, Behrouz Biryani, and Mandarin Oak, plans to go public with an initial public offering (IPO) in the next 12 to 18 months, according to people familiar with the matter who requested anonymity.

The acquisition will be carried out by Jongsong Investments Pte. Ltd, a subsidiary of Temasek, as revealed by Rebel Foods in a filing to the Competition Commission of India (CCI) on Monday. While Temasek did not provide a comment, and Rebel Foods along with Peak XV, Coatue, and Lightbox also did not respond to emailed queries, the move marks another step in Rebel Foods’ journey toward becoming a publicly traded company.

Rebel Foods is joining a growing list of companies preparing for IPOs that have witnessed secondary stake sales by their early investors. Other firms such as Urban Company, Swiggy, and Lenskart have also seen early investors selling shares ahead of their own planned public listings.

Currently, Rebel Foods’ founders hold around 12% of the company, while Qatar Investment Authority (QIA) owns around 9.9%. In 2021, Rebel Foods raised $175 million in a Series F funding round led by QIA, valuing the company at $1.4 billion.

According to sources, the secondary stake purchase by Temasek values the shares at around $700-750 million, while a primary funding component in the current round was raised at the same $1.4 billion valuation as its last round. It is expected that the company will raise more capital as part of this round.

The surge in secondary and buyout deals among profitable companies has been notable since the beginning of 2023. A July report by DC Advisory revealed that these transactions accounted for 50% of total deal value between January 2023 and June 2024, rising to 62% for deals above $50 million.

Rebel Foods plans to use much of the new funding to expand its EatSure food court business. The company has been focusing on this concept and has recently partnered with fast food chain Wendy’s in India. EatSure operates 10 food courts in different cities and offers a range of items from biryani to pizza, cakes, and coffee. The company has plans to open more such outlets in the coming years.

Rebel Foods, founded in 2011 by Jaydeep Barman and Kallol Banerjee, operates cloud kitchen brands like Faasos, Behrouz Biryani, Oven Story Pizza, Mandarin Oak, The Good Bowl, SLAY Coffee, Sweet Truth, and Wendy’s. Along with its large network of over 450 kitchens in more than 70 cities across India, Rebel Foods also operates in several countries including the United Arab Emirates (UAE), Saudi Arabia, and the UK.

The company has significantly reduced its losses, from ₹657 crore in FY23 to ₹378 crore in FY24, driven by improved margins and economies of scale across its brand portfolio. Rebel Foods’ revenue from operations increased modestly, rising to ₹1,420 crore in FY24 from ₹1,195 crore in the previous financial year, while overall expenses remained stable at ₹1,857 crore, according to a report from Mint in August.

Temasek’s acquisition and Rebel Foods’ preparation for an IPO highlight the company’s significant growth and its strategy to expand both its cloud kitchen operations and its food court business through the EatSure format.