Cloud kitchen giant Rebel Foods, known for brands like Faasos and Behrouz Biryani—has reportedly initiated talks to sell its majority stake in premium chocolate and dessert brand Smoor, according to sources familiar with the matter.
As part of a broader restructuring strategy, the company has also shut down its offices in Gurugram and Bengaluru.
One of the sources mentioned that Rebel Foods, which holds approximately 57% ownership in Smoor, has been actively seeking a buyer, though discussions have not yet materialized into a deal.
According to the sources mentioned earlier, Smoor’s performance has fallen short of expectations, especially in critical markets like Mumbai. With Rebel Foods gearing up for a potential IPO, there is increasing pressure to shed underperforming brands from its portfolio.
In response to inquiries, a Rebel Foods spokesperson stated that the company remains committed to Smoor and continues to invest in its long-term growth.
“Over the past six months, we have made significant long-term investments in Smoor, including the commissioning of a new state-of-the-art manufacturing facility,” the spokesperson said.
On closing its offices, the spokesperson said, “Our decision to consolidate teams in Mumbai is a strategic step towards deeper collaboration and faster decision-making as we enter the next phase of growth.”
Rebel Foods acquired a majority stake in premium chocolate and dessert brand Smoor in April 2022, valuing the business at over $50 million. The deal aligned with Rebel’s broader ambition to transform into a comprehensive brand aggregator in the food and beverage (F&B) sector, with plans to invest up to $150 million in acquiring and growing partner brands. However, the company has not disclosed how much of that investment has been deployed so far.
At the time of acquisition, Rebel Foods had projected a threefold growth for Smoor in FY23, with a target of reaching $100 million in annual revenue by 2026.
Financial data sourced from Tracxn shows that Smoor reported a 16% rise in revenue to ₹149 crore in FY24. However, the brand continued to struggle with profitability, recording a net loss of ₹19 crore—widening from ₹17 crore in FY23 and ₹10 crore in FY22.
Meanwhile, Rebel Foods itself, which raised $210 million in a funding round led by Singapore’s Temasek at a flat valuation in December, showed signs of financial improvement in FY24 despite ongoing losses. As per filings with the Registrar of Companies (RoC), the company narrowed its net loss by 42% to ₹378 crore, while revenue rose by 19% to ₹1,420 crore.
According to sources, the latest developments reflect Rebel’s effort to streamline its operations and refocus its strategy ahead of a potential IPO, even as some of its premium brand bets, like Smoor, continue to underperform.
Rival cloud kitchen operator Curefoods—backed by Flipkart co-founder Binny Bansal—recently filed draft papers for an ₹800 crore IPO. Curefoods operates brands like EatFit, Sharief Bhai Biryani, Nomad Pizza, and Krispy Kreme and ranks as the second-largest internet-first F&B company after Rebel Foods.
In a recent LinkedIn post, Rebel Foods’ co-founder and CEO Jaydeep Barman announced that the company plans to acquire, invest in, or collaborate with restaurant brands that have reached a “minimum scale”—underscoring its continued focus on scaling strategic partnerships.
