SUMMARY
- The Competition Commission of India (CCI) has approved Google’s $350M minority stake in Flipkart, part of a $1B funding round valuing Flipkart at $35-36B.
- Singapore’s Temasek will invest $100-150M in Rebel Foods, a cloud kitchen operator, via a mix of primary and secondary share sales.
- Rebel Foods reported 19% revenue growth in FY24 and a 42% reduction in losses compared to FY23.
The Competition Commission of India (CCI) has granted clearance for two significant deals: Google’s $350 million investment in Flipkart and Temasek’s funding in Rebel Foods.
Google’s minority stake in Flipkart is part of a $1 billion funding round led by Walmart, which invested $600 million. The transaction values Flipkart at $35-36 billion and aims to support the e-commerce giant’s growth in India.
The CCI, in its order, stated that Google’s investment represents a “non-controlling acquisition”, ensuring that both parties will continue operating independently. The regulator emphasized that the assessment of competitive effects would focus primarily on the cloud services market in India, given Google’s existing operations in that domain.
Singapore’s Temasek has been cleared to invest $100-150 million in Rebel Foods, known for brands like Faasos, Behrouz Biryani, and Oven Story Pizza.
The investment includes a mix of primary and secondary share sales, with the latter pegged at a valuation of $700 million, reflecting a flat valuation compared to its last funding round nearly three years ago. Coatue and Lightbox are expected to partially divest their stakes during this round.
Rebel Foods demonstrated strong financial performance in FY24:
Revenue: Increased by 19%, reaching Rs 1,420 crore from Rs 1,195 crore in FY23.
Losses: Reduced by 42% to Rs 378 crore from Rs 656 crore in the previous fiscal year.
With Google’s backing and Walmart’s continued investment, Flipkart is positioned to strengthen its leadership in India’s e-commerce market.
Temasek’s funding underscores the growing potential of the cloud kitchen market, enabling Rebel Foods to scale operations and enhance profitability.
These investments highlight global investor confidence in India’s e-commerce and food tech sectors, signaling robust growth opportunities for both Flipkart and Rebel Foods.
