Temasek, a Singaporean sovereign fund, has been approaching the Competition Commission of India (CCI) to grant permission to make a significant investment in Rebel Foods, the firm that owns Behrouz Biryani and Faasos.

This proposed transaction includes the purchase of Rebel Foods Pvt Ltd's equity share capital and the subscription of compulsorily convertible preference shares through Temasek's subsidiary Jongsong Investments Pte.

The transaction is said to be in accordance with the Competition Act of 2002 for the acquisition of shares and voting rights, as proven by an issue submitted to the CCI.

Temasek is observed to have noticed significant markets with considerable horizontal overlaps, particularly in organized food services inside India and in overlapping locations, to help the CCI evaluate the proposed merger.

Rebel Foods is a company well known for its cutting-edge cloud kitchen concept and was reportedly in negotiations with Temasek to secure $100–150 million in finance.

The company's financial statistics for FY24 showed an 18.8 percent growth in income from operations, or Rs 1,420.24 crore, offset by a reduced consolidated loss of Rs 378.21 crore.

Compared to FY23, when revenue was Rs 1,195.22 crore and net loss was Rs 656.55 crore, this is an improvement. Rebel Foods also had a rise in other income, which increased by 2.81 percent year over year to Rs 65.29 crore in FY24.

Rebel Foods is growing into offline shops in an effort to diversify their revenue sources and reach a wider audience.

The company's rivals are Eatclub, which is funded by Tiger Global, and Curefoods, which is supported by Binny Bansal.

Temasek was leading negotiations for Rebel Foods to secure between $100 and $150 million in a new fundraising round last month.

The purpose of this investment is to help Rebel Foods achieve its goals of expanding into new markets.

With their own or franchised outlets, cloud kitchen businesses are growing their offline presence and experiencing stable development.

While venture investors continue to support consumer businesses with retail presence in the food and beverage industry, many modern, online-first brands are branching out offline in an attempt to attract new customers.