Rebel Foods Secures $13.2 Million in Debt Financing to Fuel Growth

Rebel Foods, the parent company of the popular food brand EatSure (previously Faasos), has secured Rs 110 crore ($13.2 million) in fresh debt financing. This marks the fifth debt funding round for the company since its last equity round in 2021.

Funding Details and Investors

The company’s board approved the issuance of 11,000 Series G1 non-convertible debentures at an issue price of Rs 1,00,000 per debenture to raise the capital. Regulatory filings with the Registrar of Companies (RoC) reveal this information. Orbis Trusteeship, acting on behalf of Alteria, contributed Rs 65 crore to the round, while Vistra ITCL (representing InnoVen Capital) invested Rs 45 crore. The maturity date for the Series G1 debt is set for May 1, 2027.

Debt Structure and Interest Rates

According to the filings, each debenture issued carries an annual interest rate of 13.90%. This interest will be paid out to investors on a monthly basis.

Previous Funding Rounds and Financial Performance

In April 2023, Rebel Foods raised Rs 75 crore ($9 million) in debt financing. The company also received a total of Rs 230 crore across three debt funding rounds in 2022.

Despite its funding success, Rebel Foods’ financial statements show a rise in operating losses. While revenue surged from Rs 856 crore in FY22 to Rs 1,258 crore in FY23, losses also increased from Rs 564 crore to Rs 656 crore during the same period (according to data platform TheKredible).

Strategic Focus: Offline Expansion for Oven Story Pizza

Rebel Foods plans to take its Oven Story Pizza brand offline, with the intention of opening 250-300 physical outlets over the next two to three years.

Unicorn Status and IPO Aspirations

Led by Jaydeep Barman, Rebel Foods achieved unicorn status (a valuation exceeding $1 billion) after a successful Series F funding round of $175 million led by Qatar Investment Authority in October 2021. The company’s last equity round of $14.5 million was secured in November 2021 with backing from Peak XV.

Media reports suggest that Rebel Foods is aiming for an initial public offering (IPO) by 2025, potentially becoming the first cloud kitchen company to list on the Indian stock exchange.