ESOP Buyback worth $8.2 Mn conducted by Cloud Kitchen Unicorn Rebel Foods

• ByStartupStory     |    March 23, 2022

Mumbai-based cloud kitchen unicorn Rebel Foods will be conducting ESOP Buyback worth $8.2 Mn (INR 62.5 Cr), in order to further continue ESOP buyback trend in the Indian startup ecosystem, The company’s latest RoC filings revealed, Rebel Foods’ former and current employees will be participating in this ESOP buyback. 

The startup will be buying back 7,270 equity shares from its employees at a price of INR 86,019 per share, as per the recent resolution passed by the shareholders of Rebel Foods.

For two major reasons, ESOPs buyback is a practice undertaken by startups across the world. Firstly, is to create wealth opportunities for its employees, and secondly, to increase its share pool so as to raise a fresh round of investment. However, it is still unclear from this ESOPs buyback exercise how many employees have benefited. 

Rebel Foods was founded in 2011 by Jaydeep Barman and Kallol Banerjee. It is the parent company of cloud kitchens such as Faasos, The Good Bowl, SLAY Coffee, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, Sweet Truth, among others.

Last year after raising $175 Mn in its Series F funding round, Rebel Foods had entered the unicorn club. In participation with Coatue and Evolvence. The round helped Rebel’s valuation soar to $1.4 Bn, the round was led by Qatar Investment Authority (QIA).

For strategic investments and brand acquisitions, the foodtech unicorn has earmarked $150 Mn and to expand its footprints to foreign countries. With annual run rate (ARR) sales of $150 Mn, growing 100% year-on-year (y-o-y), Rebel Foods claims to be moving towards profitability. 

In the next 18-24 months, it is further eyeing an IPO. Indian startup employees have already made $53 Mn through ESOP buybacks, as of March 5th 2022. 

Some of the major ESOP buybacks announced by Indian startups in 2022 includes Automobile car marketplace Cars24 exercising ESOP buyback worth $9.8 Mn, Walmart-backed Ninjacart announcing ESOP buyback worth $13 Mn, Logistics startup Porter announcing ESOP buyback worth $5 Mn and Fintech unicorn slice buying back ESOPs worth $8.6 Mn.

Follow Startup Story