KKR to invest $50-75 mn in Rebel Foods at $860 mln valuation

Private equity firm KKR is set to buy Rebel Foods shares worth $50-75 million from existing investors, valuing the startup at nearly $860 million, a person with knowledge of the matter said, shortly after the Mumbai-based cloud kitchen firm announced a $210 million funding round led by Singapore’s Temasek on Thursday.

The deal will be a secondary transaction, with existing investors Peak XV (formerly Sequoia Capital India and SEA) and American investment firm Coatue selling some shares, the person cited earlier said on the condition of anonymity.

“The share sale to KKR is at a 15% higher valuation than what Temasek paid,” the person added.

When contacted, spokespersons for KKR and Peak XV declined to comment, while an email sent to Coatue remained unanswered.

Earlier on Thursday, Rebel Foods said in a statement that it has secured $210 million in a Series G round led by Temasek, with participation from existing investor Evolvence. The round is said to have valued the company at $750 million, the person cited earlier said.

Mint was first to report in October that Temasek is set to pick up a 20-25% stake in Rebel Foods for $180-200 million.

Strategic expansion goals

The funding will enable the Jaydeep Barman-led company to expand its omnichannel presence and widen its brands portfolio, the company statement said. Avendus Capital was the exclusive financial adviser to Rebel Foods for the transaction.

“This funding reinforces our vision to keep strengthening our platform, thereby enhancing our portfolio of brands, scale our omnichannel presence, and drive operational excellence globally. As we enter this next phase of growth, we remain steadfast in our commitment to innovation, sustainability, and creating lasting value for our customers and stakeholders,” Jaydeep Barman, co-founder and chief executive officer of Rebel Foods, said in the statement.

Founded in 2011 by Barman and Kallol Banerjee, Rebel Foods operates brands such as Behrouz Biryani, Oven Story, and Faasos, competing with both large fast-food chains and standalone cloud kitchen operators. Currently, Rebel operates over 450 cloud kitchens across 75 cities in India, the Middle East, North Africa, Indonesia, and the UK. The company also manages 150 outlets of the fast-food chain Wendy’s in India, and runs eight outlets under its food court format.

In FY24, the company’s revenue from operations saw a modest rise to ₹1,420 crore, from ₹1,195 crore the previous year, while expenses remained flat at ₹1,857 crore, according to regulatory filings accessed by business intelligence platform Tofler.

In July, Mint reported that Rebel Foods plans to invest up to ₹200 crore to expand its physical footprint, including its food court format EatSure, as dining out regains momentum post-pandemic.

This move aligns with Rebel Foods’ broader strategy as it eyes a potential stock market listing in FY26, signalling a shift towards offline expansion as the post-pandemic boom in cloud kitchens begins to wane in favour of in-store dining.

India’s food services market is projected to nearly double to ₹9 trillion by the end of the decade, up from ₹5.5 trillion currently, driven by a growing customer base, increased consumption, and a surge in new eateries, according to a report by Bain & Company and food aggregator Swiggy.

In August, Mint reported that smaller ghost kitchens are reassessing their strategies as competition intensifies and costs rise. Many of these smaller players that have adopted an omnichannel approach with both online and physical presence, are now considering downsizing operations or merging with larger entities, highlighting the challenges even established businesses face in this evolving market.