KKR invests in Rebel Foods valuing the cloud kitchen brand at around $800 million

Private equity major KKR has acquired a stake in Mumbai-based Rebel Foods, the parent company of Faasos, Behrouz Biryani, and other cloud kitchen brands, according to a company statement. The investment was made through a secondary share purchase transaction and follows Singapore’s sovereign fund Temasek-led $210 million (approximately Rs 1,782 crore) funding round announced on December 12.

KKR has not disclosed the size of its investment.

A significant portion of the latest financing round comprises secondary share sales, conducted at a lower valuation of around $750 million. In contrast, the primary funding infusion was executed at a flat valuation of $1.4 billion. While secondaries are typically done at a discount to the last primary valuation, this transaction reflects a steep discount of approximately 50%.

The Competition Commission of India (CCI) has approved investments from both KKR and Temasek.

Rebel Foods’ existing investor, Evolvence, also participated in this round.

“We are happy to welcome KKR as a strategic partner in our journey. Their investment is a testament to the inroads we have made toward our vision of building a stronger platform, expanding our portfolio of brands, scaling our omnichannel presence, and achieving operational excellence on a global scale. We look forward to tapping into KKR’s deep experience and global expertise to supercharge our continued growth. As we scale, our focus remains firmly on innovation, sustainability, and delivering long-term value for our customers and stakeholders,” said Jaydeep Barman, cofounder and CEO of Rebel Foods.

Existing shareholders, including US-headquartered Coatue, Mumbai-based fund Lightbox, and other investors, partially sold their stakes during this financing. In a secondary share sale, money exchanges hands between two investors, and the capital does not flow into the company’s coffers.This Rebel Foods transaction is one of the largest late-stage deals this year, with the majority being secondary funding. Similar large secondary fundings have been reported at companies like Lenskart, PhysicsWallah, Purplle, and Healthkart as part of broader funding rounds.

ET first reported on August 26 about Temasek’s plans to acquire a stake in Rebel Foods.

Rebel Foods stated that the newly raised capital will be utilised to expand its footprint and strengthen its platform by enhancing its portfolio of brands.

“We are pleased to invest in Rebel Foods, the largest cloud kitchen operator and brand owner, using technology to deliver a range of cuisines and culinary experiences to consumers. We look forward to leveraging our global network, local knowledge, operational, and technology expertise to further scale the company’s ability to expand its portfolio and deliver innovative products to meet consumers’ evolving preferences,” said Akshay Tanna, partner and head of India private equity at KKR.

Founded in 2011 by Barman and Kallol Banerjee, Rebel Foods plans to float an initial public offering by 2026.

Rebel Foods’ portfolio includes brands like Oven Story Pizza, Lunchbox, The Good Bowl, and Sweet Truth. It also operates offline outlets under the EatSure brand and holds master franchise rights for Wendy’s India. The company currently operates more than 450 kitchens across 70 cities in India and has expanded into international markets, including the UAE and the UK.

The funding round comes at a time when cloud kitchen brands are experiencing moderate growth and expanding offline through company-owned or franchise stores. Flipkart founder Binny Bansal-backed Curefoods has also raised Rs 500 crore in two tranches this year.

Early-stage food and beverage brands have also gained traction among venture investors, with multiple companies raising funding in recent months.

According to a recent report by the National Restaurant Association of India, the growth in the cloud kitchen sector between 2019 and 2024 ranged from 30% to 40%, with an optimistic outlook of 35.2% for the next four years. This growth rate surpasses that of quick-service restaurants, cafes, casual dining, fine dining, and other segments in the food sector.