Temasek Seeks Approval for Stake Acquisition in Rebel Foods

Singapore's sovereign wealth fund, Temasek Holdings, has approached the Competition Commission of India (CCI) for approval to acquire a stake in foodtech company Rebel Foods, which operates well-known brands such as Faasos, Behrouz Biryani, and Ovenstory Pizza.

Temasek, through its subsidiary Jongsong Investments Pte, is acquiring compulsorily convertible preference shares and equity share capital in Rebel Foods Pvt Ltd. In a notice submitted to the CCI on October 11, Temasek stated that the proposed transaction does not raise competition law concerns, regardless of how the markets are defined. 

To assist the CCI in evaluating the deal, Temasek highlighted key markets with significant horizontal overlaps, particularly in the organised food services sector across various cities in India. The transaction falls under the scope of the Competition Act, 2002, and involves the acquisition of shares and voting rights in Rebel Foods.

Rebel Foods, the cloud kitchen startup, had been in talks with Temasek to raise between $100-150 million in a new funding round. In August, Rebel Foods reported a narrowing of its consolidated loss to Rs 378.21 crore for FY24, an improvement from the Rs 656.55 crore loss in FY23. The company’s revenue from operations increased by 18.8 percent to Rs 1,420.24 crore in FY24, up from Rs 1,195.22 crore the previous year.

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods operates over 450 kitchens across 70 cities, making it the largest internet restaurant company globally. The company manages more than 45 brands, including SLAY Coffee, Mandarin Oak, The Good Bowl, and Wendy's, and has expanded into offline stores to boost revenue. Rebel Foods faces competition from players like Curefoods, backed by Binny Bansal, and Tiger Global-funded Eatclub.