Coatue Management, a New York-based hedge fund, is in talks to lead a $120 million funding round in Mumbai-based Rebel Foods, which owns and operates brands of cloud kitchens such as Faasos, reported LiveMint, citing three people privy to the developments.
If the deal materialize then Faasos will be Coatue’s second investment in India after Swiggy, in which the US-based investor had invested in last December.
Coatue plans to invest $100 million in the latest round, while existing investors will pump in $15-20 million in Rebel Foods, said the report.
GoJek, an Indonesian unicorn startup, also plans to invest $5 million as part of the round through its investment arm, Go Ventures.
Interestingly, investors was reportedly willing to invest more capital, to the tune of $170-180 million, however the foodtech startup decided to stick to its original plan to avoid excessive stake dilution and because they did not immediately need so much capital
The upcoming funding of Rebel Foods is being worked out at a post-money valuation of $500 million, said the report. Notably, in March Faasos has formed a joint venture with GO-JEK, and the two comanies jointly invested about $8-10 million in the joint venture.
Faasos was founded in 2011 by Jaydeep Barman and Kallol Banerjee, and till date has raised a total of about $120 Mn in funding over nine rounds. Sequoia Capital India, Lightbox Ventures and Alteria Capital few of its investors.
Founded in 1999, Coatue Management invests in the public equity markets globally focusing on investments in technology, media and telecommunications in addition to other sectors. Its most recent recent investment was New York-based UiPath, which designs and develops robotic process automation software.
Coatue Management is also known for its past investment in some of the world’s top-notch startup including Uber, Lyft, and Careem.
[Top Image Via ET Rise]