Temasek Holdings, a Singapore state investor, plans to buy a major stake in Rebel Foods through a mix of new equity and buying existing shares as the cloud kitchen unicorn, is preparing to announce its Initial Public Offering (IPO).
Temasek to invest $200 million, becomes largest investor
According to Mint, some of the early funding partners are Coatue Management, Lightbox, and Peak XV. Additionally, these companies are selling some shares and reducing their stakes before the startup’s IPO in the next 12-18 months.
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Meanwhile, Temasek’s subsidiary, Jongsong Investments, will buy these shares, representing a 20-25% stake in Rebel Foods, for about $180-200 million (approx. INR 1500-1680 crore), according to the report. If the deal goes through, Temasek will be the largest shareholder in Rebel Foods. The founders own 12% and Qatar Investment Authority owns about 10%. Furthermore, Rebel Foods plans to use the new funds to grow its food court business, EatSure.
Rebel Food revenue surges to INR 1,420.2 cr in FY24
Established in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods runs several quick service restaurant (QSR) brands like Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, and Wendy’s. The startup makes money by selling food from its own cloud kitchens and third-party kitchens. It also earns from delivery charges and royalties through collaboration with other companies.
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Notably, Rebel Foods cut its net loss by 42% to INR 378.2 crore in FY24 from INR 656.5 crore the previous year through higher revenue and controlled costs. Its operating revenue rose 19% to INR 1,420.2 crore in FY24 from INR 1,195.2 crore in FY23. This second stake purchase comes as many late-stage Indian startups are seeing early investors sell shares before their IPOs to make profits.
Moving forward, Startups like Urban Company, Swiggy, and Lenskart have had secondary transactions before their IPOs, giving early investors partial exits and high returns.
