Mumbai-based cloud kitchen giant Rebel Foods saw its operating revenue cross the INR 1,000 Cr mark in the financial year ending on March 31, 2023.
According to the latest financial statements submitted to the Registrar of Companies, Rebel Foods, the umbrella company for Faasos and Behrouz Biryani, disclosed an operating revenue of INR 1,195.2 Cr in FY23, marking a 39% increase from the INR 858.6 Cr reported in the preceding fiscal year.
Established in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods is a startup specializing in cloud kitchens. It encompasses well-known brands including Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, SLAY Coffee, and Sweet Truth.
The main revenue stream for the startup comes from the sale of its food products. When considering additional income, the startup achieved a total revenue of INR 1,258.7 Cr in FY23, marking a 1.3X increase from the INR 907.5 Cr generated in FY22. However, during the same period, the startup recorded a loss of INR 656.5 Cr, reflecting a 23% year-on-year (YoY) increase.
During the year under review, the startup witnessed a 28% rise in total expenditure, reaching INR 1,827 Cr, compared to the INR 1,428.9 Cr spent in the previous year.
As a cloud kitchen, Rebel Foods allocated a significant portion of its funds towards the acquisition of raw materials. In the period being evaluated, the startup’s procurement cost increased from INR 446.4 Cr in FY22 to INR 577.5 Cr.
The startup’s employee benefit expenses, primarily consisting of salaries, saw a 34% year-on-year (YoY) rise, reaching INR 405.4 Cr in FY23. In June, Rebel Foods extended Employee Stock Ownership Plans (ESOPs) to 5,000 employees. According to its LinkedIn profile, the company currently employs 2,743 individuals.
Advertising expenses experienced a modest increase of 5%, reaching INR 197.9 Cr in FY23, compared to the INR 188.5 Cr incurred in FY22.
Additionally, the startup allocated INR 163.3 Cr towards commissions paid to various selling agents, predominantly Swiggy and Zomato.
In terms of unit economics, Rebel Foods expended INR 1.5 to generate each rupee from its operations. The startup’s EBITDA margin showed improvement, narrowing to -37.8% in FY23 from -46.4% in FY22.
Thus far, the startup has secured slightly more than $500 million in funding, with notable backers including Goldman Sachs, Peak XV Partners, InnoVen Capital, Trifecta Capital, and the Qatar Investment Authority (QIA). Asserting a widespread presence, the startup asserts a network of over 450 kitchens spanning 70 cities nationwide. In the competitive landscape, the startup faces competition from rivals such as Curefoods, Biriyani By Kilo, Freshmenu, and others.