Cloud-kitchen brand Rebel Foods (earlier Faasos) has been in talks for months with several new investors for raising about Rs 700 crore. The deal has finalised now, and the Mumbai-based firm is receiving Rs 564 crore in the ongoing Series D round majorly from Coatue PE Asia.
Coatue PE Asia is investing anywhere between Rs 500- 576 crore in the third tranche of the Series D round. GV Bites (a Go-Jek- entity) had already poured in Rs 32.45 to 37.44 crore in D2 round in May by acquiring 667 Series D2 CCPS shares at a price band of Rs 4.23-4.88 lakhs per share.
It also picked up 100 equity shares for the same price range.
The resolution to approve allotments to GV Bites was passed in May while Coatue’s approval passed in July. The share price of the Mumbai-based company jumped by almost Rs 25,000 in a span of two months.
Coatue and GV Bites will have 14.7% and 1.35% stakes respectively in Rebel Foods (holding entity of Fassos).
Media reports surfaced in May about Faasos raising over $100 million round from Coatue, Goldman Sachs, Falcon Edge and Canadian Pension Plan Investment Board. However, they are yet to invest in the firm. It looks like they would invest in coming tranches and if they do so, the round is likely to cross $100 million mark.
Rebel Foods has been valued anywhere between Rs 3095.61-3,571.85 crore in the D3 round. It’s the third firm in foodtech space after Swiggy and Zomato to have a valuation of Rs 3,000 crore plus.
UberEats was getting a valuation of about Rs 2,200 crore in a share-swap deal where Uber was supposed to have a 10% stake in Swiggy. Since Swiggy was valued about $3.3 billion in February, UberEats was valued under $350 million at that time.
The deal didn’t materialise because of differences over valuation among other things.
If we compare Faasos with the Uber-owned online ordering app, the former is valued at least over Rs 1,000 crore more than the latter’s valuation in February. Let’s assume UberEats valuation could have increased since February. Still, its valuation is unlikely to come anywhere close to Rebel Food’s new valuation.
Recently, UberEats engaged in talks with Amazon for acquiring its online food ordering business. Uber is estimated to be valued between $300 to 350 million in the ongoing conversation.
For the uninitiated, Rebel Food runs multi-brand cloud kitchen across brand names – Faasos, Oven Story, Firangi Bake, Mandarin Oak, Kettle & Eggs, and Behrouz. According to industry estimates, it generates about 60% of its demand via online food ordering majors – Swiggy, Zomato and UberEats.
Unlike the restaurants that bear heavy real-estate costs, the cloud-kitchen model allows Rebel to run its operations from a small space in inexpensive locations in any city. The model provides a far better margin to Faasos as compared to restaurants and food joints.