Singapore’s sovereign wealth fund Temasek is in advanced negotiations to lead a significant investment ranging between $100m and $150m in Indian online restaurant company Rebel Foods.
Rebel Foods is the parent company of cloud kitchen brands such as Faasos and Behrouz Biryani.
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Temasek is reportedly close to finalising a deal that will involve both primary and secondary share sales, according to Indian media reports.
The potential investment comes as Rebel Foods, a company that turned unicorn in October 2021 following a $175m funding round, is preparing for a public listing in the coming years.
The secondary share sale component, which involves current investors selling part of their holdings to Temasek, is expected to be valued at around $700m.
This marks a decrease from the $1.4bn valuation achieved during the last investment round led by the Qatar Investment Authority (QIA).
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By GlobalDataUS investment firm Coatue and India’s own Lightbox are among the existing stakeholders anticipated to reduce their shares in the upcoming secondary sale.
The exact proportions of the secondary sales are still being determined, with the possibility of other investors joining the transaction.
Temasek’s entry as a new investor is a significant addition to Rebel Foods’ diverse shareholder base, which includes Lightbox, holding 9.7%, and Coatue with an 18.6% stake. Other notable investors include Peak XV Partners and Goldman Sachs.
It is important to note that in secondary share sales, the funds raised do not contribute to the company’s capital but are instead received by the exiting investors.
Meanwhile, Temasek has been actively expanding its portfolio in India, unveiling plans to invest an additional $10bn in the country over the next three years, a strategic move amidst the investment slowdown in China.
Last year alone, Temasek invested $3bn in India, securing significant positions in businesses such as Zomato, Cultfit, Manipal Hospitals, Ola Electric and Upgrad.
Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods has grown to operate 450 kitchens across 70 cities and has expanded its brand presence to about ten countries, including the UAE, Saudi Arabia, and the UK.
