Singapore’s sovereign wealth fund, Temasek, is in advanced discussions to lead a $100–150 million investment in Rebel Foods, the parent company of popular brands such as Faasos and Behrouz Biryani, according to sources familiar with the matter. The investment is expected to be a mix of primary and secondary share sales, with Rebel Foods’ valuation remaining nearly flat compared to its last funding round three years ago.
The secondary share sale, where existing investors are set to partially divest their stakes to Temasek, is likely to occur at a reduced valuation of around $700 million. This marks a significant drop from the $1.4 billion valuation Rebel Foods achieved in October 2021, when it became a unicorn following a $175 million funding round led by Qatar Investment Authority (QIA).
U.S.-based Coatue and India’s Lightbox, which hold 18.6% and 9.7% stakes in Rebel Foods, respectively, are expected to partially sell their shares as part of this secondary sale. Other existing investors may also participate. Temasek is poised to join as a new investor in the company.
Rebel Foods, founded in 2011 by Jaydeep Barman and Kallol Banerjee, operates 450 cloud kitchens across 70 cities and offers its brands in 10 countries, including the UAE, Saudi Arabia, and the UK. The company has plans to go public within the next one to two years.
In addition to its flagship brands like Faasos and Behrouz Biryani, Rebel Foods also owns Oven Story Pizza, Mandarin Oak, Firangi Bake, and Sweet Truth. The company operates its own food ordering platform, EatSure, which has seen a growing share of the company’s orders and is expanding its offline presence. Rebel Foods also holds the master franchise rights for Wendy’s in India and owns a majority stake in the chocolate and dessert brand Smoor.
This investment comes at a time when cloud kitchen brands are experiencing moderate growth and expanding into offline channels through their own or franchise stores. The proposed $100–150 million investments in Rebel Foods is part of a broader resurgence in late-stage funding deals. Despite challenges in the sector, Rebel Foods has shown predictable growth, with its brands gaining prominence, making it an attractive investment opportunity.
Temasek’s interest in Rebel Foods aligns with its broader strategy to invest $10 billion in India over the next three years, amid a slowdown in China. The fund has already invested $3 billion in India last year and holds significant stakes in companies like Manipal Hospitals, Ola Electric, Zomato, and UpGrad.