Faasos' parent company receives $15.8M from Sequoia Capital, Lightbox Ventures, and Evolvence India
Cloud kitchen restaurant company Rebel Foods, which operates the Faasos brand, has raised Rs 110 crore ($15.8 million) from venture capital firm Sequoia Capital India, Lightbox Ventures, and Evolvence India Fund. According to Registrar of Companies (RoC) filings, this was a part of the Series D1 round.
The Pune-based online food delivery startup had raised $4.2 million (Rs 30 crore) from venture debt fund Alteria Capital this January.
Founded by IIM Lucknow alumnus Jaydeep Burman in 2003, Faasos started out as a quick service restaurant (QSR). It is now a multi-brand cloud kitchen model that has established brands like Oven Story, Firangi Bake, Mandarin Oak, Kettle & Eggs, and Behrouz under Rebel Foods.
According to the RoC filings, Lightbox Ventures has contributed about Rs 33.3 crore via Lightbox Expansion Fund. Sequoia Capital's contribution stands at Rs 70 crore, and they invested via SCI Investments VI. Evolvence India invested Rs 7.12 crore.
According to media reports, Jaydeep said that this was a part of a larger round of $75 million - $100 million, and the subsequent contributions will see participation from newer investors.
Media reports say that Sandeep Murthy, Founding Partner of Lightbox, suggested Rebel Foods opening a shop in Dubai, and the additional capital would be funding its expansion to other geographies.
Rebel Foods competes with the likes of Biryani By Kilo, Box8, and FreshMenu, which recently raised $2.94 million (approximately Rs 21 crore) in a round led by Lightspeed Venture Partners. Existing investors Zodius Technology Fund, and K Ganesh's fund GrowthStory had also participated in the round.
Given the high rental required for dine-in restaurants, expansion of delivery-only restaurants is easier. Moreover, they can provide more competitive prices to their patrons right at the comfort of their homes.