Rebel Foods’ Revenue Up By 19% Losses Down by 42% in FY24

Rebel Foods, the unicorn cloud kitchen business behind popular brands like Behrouz Biryani, Oven Story, and Faasos, saw its losses reduce to ₹378 crore in FY24 from a net loss of ₹657 crore due to increased margins and economies of scale across its portfolio.

In FY24, the company’s revenue from operations increased slightly to ₹1,420 crore from ₹1,195 crore the previous year, but expenses stayed steady at ₹1,857 crore, according to regulatory records accessed by business intelligence platform Tofler.

“We can address vast food segments from a single infrastructure using strong brands. We also strengthened our portfolio throughout the year as a result of outstanding customer insights and culinary innovations,” the business stated on Friday. “The board of directors are confident that the company will break even soon and will have a high growth rate in the years to come.”

Related: Karnataka-Based Hangyo Ice Cream Bags Rs 211 crore from Faering Capital

Despite its better financial health, Rebel Foods’ valuation has dropped from roughly $1.4 billion in 2021 to $1 billion currently, as it competes with Binny Bansal-backed Curefoods, Tiger Global-funded Eatclub, and other late-stage startups in the industry.

Rebel Foods, like other consumer brands, intends to double down on its omnichannel strategy by expanding its retail presence. It plans to open 100-250 physical locations and has even considered creating an offline food hall where all nine of its brands will be offered under one roof.

In July, Media reported that the Mumbai-based firm planned to invest up to ₹200 crore to expand its physical footprint, including its food court style EatSure, as dining out gains traction after the pandemic.

This move is consistent with Rebel Foods’ overall strategy, which includes a potential stock market IPO in FY26, and signals a turn toward offline expansion as the post-pandemic boom in cloud kitchens fades in favor of in-store dining.

Rebel Foods, founded in 2011 by Jaydeep Barman and Kallol Banerjee, competes with huge fast food chains as well as solo cloud kitchen companies.

Rebel currently operates over 450 cloud kitchens in 75 cities in India, the Middle East, North Africa, Indonesia, and the United Kingdom. The company also maintains 150 Wendy’s fast-food restaurants in India and operates eight food courts.

According to a survey by Bain & Company and food aggregator Swiggy, India’s food services sector is expected to nearly double to ₹9 trillion by the end of the decade, up from ₹5.5 trillion. This growth is driven by a larger customer base, greater consumption, and a rise in new eateries.

Earlier this week, media outlets reported that smaller ghost kitchens are rethinking their strategy as competition heats up and expenses grow. Many of these smaller players, which have embraced an omnichannel strategy with both online and offline presences, are now considering downsizing or merging with larger corporations, underlining the obstacles that even established businesses confront in this changing industry.