CCI Approves Temasek's Stake Acquisition in Rebel Foods

The Competition Commission of India (CCI) has granted approval for the acquisition of a stake in Rebel Foods by Jongsong Investments, a wholly owned subsidiary of Temasek.

According to a statement from CCI, the proposal involves Jongsong subscribing to compulsorily convertible preference shares and acquiring equity shares in the cloud kitchen unicorn, Rebel Foods. The regulatory body stated, *“CCI approves the proposed acquisition of shares in Rebel Foods Private Limited by Jongsong Investments Pte. Ltd.”*  

Earlier reports indicated that Temasek was planning a significant stake acquisition in Rebel Foods through a combination of primary equity infusion and secondary share purchases. Rebel Foods is also reportedly considering a public listing within the next 12-18 months.  

As part of this development, early investors such as Coatue Management, Lightbox, and Peak XV Partners are expected to sell part of their combined 20-25 percent stake. This transaction, estimated at $180-200 million, will enable Jongsong Investments to become Rebel Foods' largest shareholder. Currently, the startup's founders hold a 12 percent stake, while Qatar Investment Authority owns approximately 10 percent.  

Founded in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods operates several quick-service restaurant (QSR) brands, including Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, and Wendy’s. The company generates revenue through food sales via its cloud kitchens and third-party platforms, along with delivery fees and royalties from partnerships.  

Rebel Foods reported a 42 percent reduction in net losses in FY24, bringing it down to Rs 378.2 crore from Rs 656.5 crore in FY23. This improvement was attributed to an increase in operating revenue, which rose by 19 percent to Rs 1,420.2 crore in FY24 compared to Rs 1,195.2 crore in FY23.  

This transaction aligns with a broader trend in the Indian startup ecosystem, where late-stage companies are facilitating secondary share sales ahead of their IPOs. Startups like Urban Company, Acko, and Lenskart have also witnessed similar transactions, providing partial exits for early investors.