Rebel Foods, which operates a network of cloud kitchens and digital brands, has acquired a majority stake in luxury chocolate brand Smoor, in its run-up to become a brand aggregator in the food and beverage (F&B) space, the company said in a release.
The announcement comes within months of Rebel Foods announcing that it is looking to invest $150 million over the coming years, as part of its focus on investing and acquiring promising close to 40 brands to serve more food categories from its cloud kitchens.
The Mumbai-based company has created brands such as Faasos, Behrouz Biryani, Ovenstory Pizza and Mandarin Oak. Last year, it took over the India franchise of US burger brand Wendy’s.
It had raised $175 million in a funding round led by Qatar Investment Authority in October last year, taking its valuation beyond a billion dollar in value and making it a part of the coveted Unicorn club.
Rebel Foods had said in October that it planned to launch its IPO in the next 18-24 months. It operates more than 450 kitchens in 10 countries, including Indonesia, the United Arab Emirates and the United Kingdom.
“Being an early adopter of the Thrasio model in food in India, we have disrupted a 500 years old industry of the traditional restaurant business, by building a full-stack technology-enabled platform – Rebel Operating System. Our focus will continue to be on bringing great quality brands to every neighbourhood across food missions,” said Raghav Joshi, co-founder of Rebel Foods.
“With this investment, Smoor aims to grow by 3x in FY 23. Smoor has witnessed tremendous growth even on online platforms and this partnership would further help in the brand growth,” it said.
The transaction values the chocolate brand at $50 million.
The company claims to have an annual compounded annual growth rate of CAGR of more than 40% over the last 5 years. It sells across their Signature Lounge, Cafes, Kiosks, own digital platforms as well as online aggregator platforms.
“The Smoor brand has grown over 120% since last year and is looking to achieve a scale of $100 million in annual revenue by 2026, by expanding its presence in India and globally,” the release said.
The company will continue to build its omnichannel distribution strategy by expanding its physical customer experience centres across Tier 1 cities in India and accelerating its online presence across digital platforms.
“The Indian chocolate market is growing at a breakneck pace. With Rebel Foods’ investment, we are set to make deeper inroads into the global market, introducing new and exciting confectionaries in multiple, accessible formats,” said Vimal Sharma, chief executive officer of Smoor.
Started in 2019 with Slay Coffee, Rebel Launcher (the brand aggregator of the company) counts brands such as Wendy’s, Mad Over Donuts, Natural Ice Cream, Anand Sweets, Baskin Robbins India, The Belgian Waffle as its portfolio.Source: Economic Times