Rebel Foods in talks to exit premium chocolate brand Smoor

Cloud kitchen company Rebel Foods, the owner of brands like Faasos and Behrouz Biryani, is in discussions to divest its stake in premium chocolate and dessert maker Smoor, as reported by Economic Times.

As part of its operational restructuring, Rebel Foods has shut down its offices in Gurugram and Bengaluru. The company, which holds nearly 57% stake in premium chocolate brand Smoor, has been exploring a sale but has not finalised a deal yet.

Rebel Foods, which picked up a majority stake in premium chocolate brand Smoor in April 2022 at a valuation of over $50 million, had positioned the deal as part of its larger push to become a brand aggregator in the F&B space. The company had outlined plans to invest up to $150 million in acquiring and scaling food brands but has not disclosed how much of that capital has been deployed so far.

At the time of acquisition, Rebel Foods had projected a threefold growth for Smoor in FY23 and set a target of achieving $100 million in annual revenue by 2026. However, recent financials suggest challenges in that trajectory. Smoor posted a 16% revenue rise in FY24 to Rs. 149 crore, according to data from Tracxn, but its losses widened. The company reported a net loss of Rs. 19 crore in FY24, up from Rs. 17 crore in FY23 and Rs. 10 crore in FY22.