Exclusive: Rebel Foods raises debt from Northern Arc and Stride

Cloud kitchen brand Rebel Foods has picked up another debt round amid funding winter. The parent company of EatSure (previously Faasos) has raised Rs 75 crore in debt from Catalyst Trustship (Northern Arc) and Stride Ventures.

The board at Rebel Foods has passed a special resolution to issue 7,500 Series F non-convertible debentures at an issue price of Rs 1,00,000 per debenture to raise Rs 75 crore, regulatory filings with the Registrar of Companies (RoC) show.

Catalyst Trustship has invested Rs 25 crore while Stride Venture pumped in Rs 50 crore. In 2022, the Bengaluru-based firm had raised Rs 225 crore in debt across three rounds from InnoVen Capital, Trifecta Ventures and Alteria Capital.

Rebel Foods claims to operate over 450 kitchen locations and over 4,000 internet restaurants across 70 cities in 10 countries. It operates food brands such as Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, and Slay Coffee.

Rebel Foods entered the unicorn club after raising $175 million in its Series F round led by Qatar Investment Authority in October 2021.  The Sequoia-backed company raised its last equity round of $14.5 million as a top-up of Series F in November 2021.

Like several growth and late stage companies, Rebel Foods also went through layoffs. The company, however, said that it happened due to a realignment in the organisation.

The company’s revenue from operations shot up 2.1X to Rs 859 crore in FY22 whereas its losses also spiked 54.9% to Rs 564 crore from Rs 364 crore in FY21. Rebel Foods recently said that it is looking to set up 100 outlets in two years as it revisits its offline retail plans in a bid to turn profitable this year.