KKR Joins Rebel Foods Captable

SUMMARY

The private equity giant has picked up stakes in the foodtech startup with an undisclosed investment

With the fresh capital netted as part of the transaction, Rebel Foods will look to expand within India and the Middle East

Prior media reports peg the size of the deal to be in the range of $50 Mn to $75 Mn

Private equity giant KKR has bought an undisclosed stake in cloud kitchen unicorn Rebel Foods, a couple of days after the competition watchdog Competition Commission of India (CCI) approved the stake acquisition bid.

With the undisclosed fresh capital netted as part of the transaction, Rebel Foods will look to expand within India and the Middle East as well as add more food and beverage brands into its portfolio.

On the other hand, this marks the latest growth equity investment for KKR made from its Asia Next Generation Technology strategy. Under this strategy, KKR seeks to support the growth of innovative, disruptive companies in Asia Pacific across sectors like consumer technology, software and fintech.

“We look to tap into KKR’s deep experience and global expertise to supercharge our continued growth. As we continue to scale, our focus remains firmly on innovation, sustainability, and delivering long-term value for our customers and stakeholders,” Rebel Foods’ cofounder and CEO Jaydeep Barman said.

On December 17, the CCI said that KKR’s subsidiary Royce Asia Holdings will acquire an undisclosed amount of shares and compulsorily convertible preference shares (CCPS) of the startup via a secondary transaction.

While the financial details of the said secondaries has not been disclosed, media reports peg the size of the deal to be in the range of $50 Mn to $75 Mn. KKR was reported to be buying a stake in the startup from its investors like Peak XV Partners and Coatue in a deal that values the startup in the range of $800 Mn to $860 Mn.

Pertinent to mention that Rebel Foods raised its largest equity funding round just last week. In its Series G round, the startup netted $210 Mn from investors Temasek and Evolvence.

Founded in 2011 by Kallol Banerjee and Barman, Rebel Foods operates multiple quick-service restaurant (QSR) brands such as Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, and Wendy’s.

The recent fundraise sprint opens the door for the startup’s potential listing. The startup has been eyeing a public listing within the next 12-18 months.

On the financial front, Rebel Foods trimmed its net loss by 42% to INR 378.2 Cr in the fiscal year 2023-24 (FY24) from INR 656.5 Cr in FY23. Its operating revenue also went up by 19% to INR 1,420.2 Cr in FY24 from INR 1,195.2 Cr in FY23.