Rebel Foods announced on Tuesday that it has earmarked $150 Mn for spearheading strategic brand investments and acquisition strategy in India as well as globally. The decision comes at a time when competition is heating up in the cloud kitchen space. Notably, Rebel Foods had earned a unicorn tag earlier this year after raising $175 Mn in October. Eventually becoming the first startup from the cloud kitchen space to cross the $1 Bn valuation.
Rebel Foods’ strategy of investing in existing brands and scaling it further is apparently driven from Thrasio-style-model. For all those who are not aware, Thrasio is a successful American startup that is known for buying hottest and highly promising brands and consequently scaling their business by optimizing their marketing costs and providing them technological assistance.
The Mumbai based startup currently operates several popular cloud kitchen brands. This includes Fasoos, Behrouz Biryani and Oven Story Pizza. The company initially ran its brand Fasoos as Quick Service Restaurant (QSR). However, the increasing overhead cost and the funding crunch compelled the startup to opt for a pivot and finally opted for a cloud kitchen model.
Leveraging the benefit of cost efficiency that inherently comes with cloud kitchen model, Rebel Foods scripted a successful comeback and today stands as one of the poster boys of India’s nascent cloud kitchen industry. Interestingly, the company boosts a good presence in the international market including Indonesia, UAE, United Kingdom, Singapore, Hong Kong and Malaysia.
Meanwhile, the landscape of domestic cloud kitchen industry is witnessing intense competition. Rebel Foods’ rival player Box8 recently raised $40 Mn from global VC giant Tiger Global. Another prominent player Curefoods has recently scooped up fresh funds to implement its own Thrasio style acquisition strategy. Notably, Curefoods is founded by famous startup entrepreneur Ankit Nagori.
