IPO-Bound Rebel Foods Slashes Losses to ₹378 Crore in FY24

Rebel Foods, the cloud kitchen startup behind popular brands like Behrouz Biryani, Oven Story, and Faasos, significantly reduced its losses to ₹378 crore in FY24, down from ₹657 crore the previous year. This was achieved through improved margins and better efficiency across its brand portfolio.

Revenue and Expenses Remain Steady

The company’s revenue from operations grew to ₹1,420 crore in FY24, compared to ₹1,195 crore the previous year. Despite this revenue growth, expenses remained stable at ₹1,857 crore, according to regulatory filings reviewed by Tofler.

Strong Brand Presence Drives Growth

Rebel Foods credited its ability to serve large food categories from a single infrastructure with strong brand support as a key factor in its improved performance. The company also emphasized its focus on customer insights and culinary innovations to strengthen its offerings. The board of directors expressed confidence in the company’s future, predicting a break-even point soon and a high growth rate in the coming years.

Expansion Plans and IPO Ambitions

In July, it was reported that Rebel Foods plans to invest up to ₹200 crore to expand its physical footprint, including its food court format EatSure. This move comes as dining out gains momentum post-pandemic and aligns with Rebel Foods’ broader strategy as it prepares for a potential stock market listing in FY26.

Global Operations and Market Position

Currently, Rebel Foods operates over 450 cloud kitchens in 75 cities across India, the Middle East, North Africa, Indonesia, and the UK. The company also manages 150 Wendy’s outlets in India and runs eight food courts.

Competition and Market Challenges

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods competes with large fast-food chains and standalone cloud kitchen operators. India’s food services market is expected to nearly double to ₹9 trillion by the end of the decade, according to a report by Bain & Company and Swiggy.

Smaller Ghost Kitchens Reevaluate Strategies

Recent reports indicate that smaller ghost kitchens are reassessing their business strategies due to growing competition and rising costs. Many of these operators, who have adopted both online and offline models, are now considering scaling back operations or merging with larger entities, highlighting the challenges in this evolving market.