SUMMARY
- CCI approves Temasek’s stake acquisition in Rebel Foods through its subsidiary, Jongsong Investments.
- Jongsong to purchase 20–25% stake for $180–$200M; Temasek becomes Rebel Foods’ largest stakeholder.
- Rebel Foods’ FY24 revenue grew 19%, while net loss decreased 42% to ₹378.2 crore.
The Competition Commission of India (CCI) has approved Temasek’s stake acquisition in Rebel Foods through its wholly owned subsidiary, Jongsong Investments.
According to a statement from the competition authority, the companies suggested that Jongsong purchase equity shares of the cloud kitchen unicorn and subscribe for mandatory convertible preference shares of Rebel Foods. Temasek was reportedly seeking to purchase a sizable portion of Rebel Foods through a combination of primary equity infusion and secondary share sales earlier this year.
In a statement, the regulatory watchdog stated, “CCI approves the proposed acquisition of shares in Rebel Foods Private Limited by Jongsong Investments Pte. Ltd.”
Early investors such as Peak XV Partners, Lightbox, and Coatue Management are reportedly seeking partial exits prior to then. It is anticipated that Jongsong Investments will purchase their combined 20–25% shareholding for between $180 and $200 million.
Temasek will become Rebel Foods’ biggest stakeholder after the deal. At the moment, the Qatar Investment Authority owns roughly 10% of the firm, while the founders share 12%.
Rebel Foods, which was founded in 2011 by Kallol Banerjee and Jaydeep Barman, is the operator of several quick-service restaurant (QSR) brands, including Wendy’s, Behrouz Biryani, Ovenstory Pizza, The Good Bowl, and SLAY Coffee. The startup‘s main source of income is the food products it sells in both its own and third-party cloud kitchens. Additionally, it generates revenue from royalties and delivery fees through partnerships.
In the fiscal year 2023-24 (FY24), Rebel Foods’ net loss decreased by 42% to ₹378.2 crore from ₹656.5 crore in the prior fiscal year thanks to a rise in its top line and cost discipline. In FY24, operating revenue increased by 19% to ₹1,420.2 crore from FY23’s ₹1,195.2 crore.
