US-based KKR, through its affiliate — Royce Asia Holdings II Pte, is acquiring a stake in Rebel Foods, which owns Faasos, Behrouz Biryani, Oven Story and other cloud kitchens
New Delhi: The Competition Commission of India (CCI) on Monday approved the proposal by global investment firm Kohlberg Kravis Roberts & Co. (KKR) to acquire a stake in home-grown food-tech company Rebel Foods.
US-based KKR, through its affiliate — Royce Asia Holdings II Pte, is acquiring a stake in Rebel Foods, which owns Faasos, Behrouz Biryani, Oven Story and other cloud kitchens.
“By way of the proposed transaction, Royce proposes to acquire certain equity shares and compulsorily convertible preference shares of Rebel Foods (on a fully diluted basis) by way of a secondary purchase,” a notice submitted to the CCI said.
Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Mumbai-based Rebel Foods has 450 kitchens across 10 countries, including India, Indonesia, the UK and the United Arab Emirates.
“There are no horizontal overlaps and or vertical/ complementary links between the activities of the parties (Royce Asia Holdings II and Rebel Foods) and their respective groups/ affiliates, in India.
“Accordingly, absent any horizontally overlapping, and or vertically/ complementary business activities of the parties in India, the relevant market need not be defined and may be left open as the proposed transaction will not lead to any adverse effect on competition in India,” the notice said.
“…the proposed transaction is being filed under the green channel route,” it added.
Under the green channel route, a transaction, which does not raise any risk of an appreciable adverse effect on competition, is deemed to be approved on being intimated to the competition watchdog.
According to reports last week, Rebel Foods was in advanced discussions to raise additional funding of $50-70 million from KKR at a valuation of $800-860 million.
The company competes with Binny Bansal-backed Curefoods and Tiger Global-funded Eatclub, among others.
Last month, CCI granted its clearance to Singapore’s sovereign wealth fund Temasek Holdings to acquire a stake in Rebel Foods.
