Rebel Foods, the cloud kitchen operator behind brands like Faasos and Behrouz Biryani, is reportedly in talks to sell its 57% majority stake in premium chocolate and dessert brand Smoor, according to a recent report. The move is part of a broader operational restructuring, though discussions are yet to be finalised.
As part of this restructuring, Rebel Foods has closed its offices in Gurugram and Bengaluru, consolidating teams in Mumbai. The company described the move as a strategic step aimed at “deeper collaboration and faster decision-making” in preparation for its next phase of growth.
Rebel Foods had acquired its majority stake in Smoor in April 2022, valuing the brand at over $50 million. At the time, the company announced plans to invest up to $150 million in a strategy to aggregate and invest in food and beverage brands. However, it has not disclosed how much of this capital has been deployed to date.
Smoor was initially projected to triple its revenue in FY23 and reach an annual revenue of $100 million by 2026. According to financial data from Tracxn, Smoor posted Rs 149 crore in revenue in FY24, marking a 16% year-on-year increase. However, net losses widened to Rs 19 crore, up from Rs 17 crore in FY23 and Rs 10 crore in FY22.
A Rebel Foods spokesperson stated that the company has made “significant long-term investments in Smoor” over the past six months, including the commissioning of a new state-of-the-art manufacturing facility. The spokesperson also reaffirmed Rebel Foods’ ongoing support for the brand.
Smoor continues to underperform in certain markets, including Mumbai, while Rebel Foods appears to be refining its brand portfolio ahead of a potential public listing.
This restructuring comes amid increased activity in the cloud kitchen space. Curefoods, backed by Binny Bansal and operator of EatFit and other brands, has recently filed draft papers for a Rs 800 crore IPO. Curefoods is considered the second-largest internet-first cloud kitchen company after Rebel Foods.
In a recent LinkedIn post, Rebel Foods CEO Jaydeep Barman stated that the company will continue to pursue acquisitions, investments, or partnerships with restaurant brands that have achieved a “minimum scale.”
