Company holds 57% stake; discussions ongoing as part of operational restructuring
Cloud kitchen major Rebel Foods, known for brands like Faasos and Behrouz Biryani, is currently in talks to sell its majority stake in Smoor, a premium chocolate and dessert brand, according to a report by The Economic Times.
As part of a broader operational realignment, Rebel Foods has recently closed its offices in Gurugram and Bengaluru. The company holds a 57% stake in Smoor and is exploring a potential exit, although no final agreement has been reached yet.
Rebel Foods acquired its majority share in Smoor in April 2022, valuing the company at over $50 million. The acquisition was part of Rebel’s strategy to evolve into a brand aggregator in the food and beverage sector. At the time, the company had announced intentions to invest up to $150 million in acquiring and scaling promising food brands, though it has not disclosed how much of that capital has been deployed.
Following the acquisition, Rebel Foods projected 3x growth for Smoor in FY23, aiming to reach $100 million in annual revenue by 2026. However, recent performance data paints a more complex picture. According to Tracxn, Smoor posted a 16% revenue increase in FY24 to Rs. 149 crore, but also reported widening losses. Net loss rose to Rs. 19 crore in FY24, compared to Rs. 17 crore in FY23 and Rs. 10 crore in FY22.
The ongoing talks indicate Rebel’s reassessment of its long-term strategic priorities amid shifting market dynamics and internal restructuring.
