Mumbai-based Rebel Foods, the parent company of Faasos and Behrouz Biryani, is reportedly in talks with SoftBank’s Vision Fund to raise USD 75-100 million funding round. Goldman Sachs, Tencent and Temasek are expected to participate in the round, Business Standard reported citing a person privy to the development.
Existing investors including Sequoia, Lightbox, Evolvence India and Sistema Asia Fund might also come in on the round.
“There are a lot of foreign investors including the American and Chinese firms which have shown a lot of interest. Faasos (Rebel Foods) has gone over the hump where they are a proper growth opportunity,” Business Standard quoted the source as saying.
Faasos Food Services is an on-demand, app-only, food delivery business with presence in ten cities founded by Jaydeep Barman and Kallol Banerjee. The company has raised a total of USD 119.6 million in funding over nine rounds. Their latest funding was raised on March 13, 2019 from a Series D1 round, according to data platform Crunchbase. The Ministry of Corporate Affairs filings showed Faasos’ parent company Rebel Foods raised funds from Lightbox, Sequoia and Evolvence in this round.
The multi-brand cloud kitchen operator has nine in-house brands such as Oven Story, Firangi Bake and Mandarin Oak. It has 175 cloud kitchens across 12 cities in India and fulfils almost 30,000 daily orders through own app, Swiggy and Zomato.
According to RedSeer Consulting, the online food ordering and delivery market in India is expected to grow at a compounded annual growth rate of more than 45% to reach USD 11 billion in gross merchandise value (GMV) by 2023.
Rebel Foods plans to use the funds to expand to international markets including Australia, West Asia, and Southeast Asia and upgrade technology such as automation.
“We really think that Rebel has got a fantastic leadership team. We are spending a lot of energies to improve the quality of cuisines. Our cloud kitchen model is really kicking in,” said one of the investors in Rebel Foods, reported Business Standard.