Foodtech Unicorn Rebel Foods’ Loss Surges 55% To INR 564 Cr In FY22, Revenue Jumps To INR 857 Cr

Foodtech startup Rebel Foods has witnessed an almost 2X increase in its consolidated total revenue in the financial year ending on March 31, 2022. The cloud kitchen unicorn startup has posted a total revenue of INR 907 Cr in FY22, a 107.7% increase from INR 436.5 Cr it had posted in FY21. However, the startup’s net losses widened by 55% to INR 564.4 Cr in FY22 from INR 364 Cr in FY21. 

Its revenue from operations rose by 111% to INR 858.6 Cr in FY22 as compared to INR 406 Cr in FY21. One of the primary reasons behind the rise in the topline of the startup could be attributed to the rise of its cloud kitchen stores across the country. In FY22 alone, the startup has added 1,000 more cloud kitchen stores, taking the total cloud kitchen count to 4,500. 

Ankur Grover, one of the cofounders of Rebel Foods in an interview with a national daily had said that the pandemic and the lockdown has in fact been a big boost for their brands as they saw a rise in order number.

In FY22, the startup saw its expenses climb by 85.7% to INR 1,428.9 Cr in FY22 from INR 769.3 Cr in FY21. Rebel Foods’ cost of material consumed stood at INR 446.4 Cr, almost 31% of the startup’s total expenditure. In FY21, cost incurred for material consumed stood at INR 199.6 Cr in FY21.

Employee benefit expense grew to INR 301.5 Cr in FY22, a 54.5% jump from INR 195 Cr in FY21. Employee benefit expense mostly comprises employee wages, PF contributions, gratuity, and other employee welfare benefits. A rise in employee benefit expenses is a clear indication that the startup has increased its employee headcount. Earlier this year, the foodtech unicorn announced a $10 Mn ESOP liquidation program for 150 current and former employees.

For advertisement and promotional activities, Rebel Foods has spent INR 188.5 Cr in FY22, a 182% increase from INR 66.8 Cr in FY21. 

The startup’s EBITDA margin improved to -49.75% in FY22, from -60.12% in FY21. 

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods is the parent company of some of the popular cloud kitchen brands such as Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, Lunch Box, Sweet Truth, and Firangi Bake. The startup has also invested in food brands such as Slay Coffee, Biryani Blues, Zomoz, and Smoor. 

It entered the unicorn club last year after raising $175 Mn in a Series F round led by Qatar Investment Authority (QIA) at $1.4Bn valuation. The startup later announced that it has earmarked $150 Mn for investments and acquisitions. 

Rebel Foods now intends to expand to 100 more cities in the country by FY23. The startup which operates in 10 overseas countries, is now planning to add 20 more countries to its overseas expansion plans. 

In the cloud kitchen space, Rebel Foods competes against the likes of Swiggy, Freshmenu, Curefit, Biryani By Kilo, among others.