Go-Jek’s investment in Rebel food: Opportunities in the delivery service sector and Cloud Kitchens
One of the Fortune’s 50 Companies, Go-Jek is ranked 17th along with Apple, Unilever, and Microsoft. It is a logistic startup company based in Jakarta, Indonesia. It is the first unicorn company known as Go-Viet in Vietnam and GET in Thailand. The company operates in the Philippines and Malaysia. In February 2019 the company was valued at the US $10 billion.
The startup company Go-Jek ranks among the top 10 most powerful brands in Indonesia. It also ranks amongst the top 3 most powerful transportation brands. Go-Jek has its financial backing from investor companies like Google and Chinese internet giant Tencent.
Go-Jek has an investment in a transportation network named Pathao. Pathao is operating in Bangladesh.
Recently the Indonesian ride-hailing influential Go-Jek has invested $5 Million in the open-ended Series D round of the Indian cloud kitchen company Rebel Foods. The startup company made this heavy investment through the investment arm GoVentures. It is to be taken into consideration that Rebel Foods boasts of an assemblage of cloud kitchen brands including Faasos, Oven Story, Lunch Box, Behrouz, and The Good Bowl among others.
According to a report on MCA filings obtained by Inc42, the company has accepted an infusion of $5 million from GoVentures. The company has now acquired 667 series D2 CCPS and 100 equity shares in Rebel Foods. Until now, the company has generated $20.9 million in its ongoing series. The existing investors such as Lightbox, Sequoia, and Evolvence have participated in the same round.
Rebel’s plan to expand further
Rebel Foods was earlier known as Faasos Food Services Pvt. Ltd. The company was founded by Jaydeep Barman and Kallol Banerjee in 2010. In the year 2018, the company was rebranded as its parent entity to Rebel Foods. The company sells its products through food delivery businesses like Swiggy and Zomato as well as independently through its own app.
After the huge success of Series D round of investment, Rebel Foods is supposed to extend its network of kitchens from 200 to 500. It is also expected to expand to Dubai and Indonesia. It will also be expanding to other countries in Southeast Asia later. Moreover, it may also invest in automation and robotics. This step will help lessen manual labor in the company kitchens.
The startup was just a quick-service restaurant (QSR). It has now turned into a multi-brand cloud kitchen model. It has established the brands like Faasos, Oven Story, Firangi Bake, Mandarin Oak, Kettle & Eggs, and Behrouz under Rebel Foods. The company has opened 1,100+ internet restaurants in India across nine brands just in the last two years. It is active in more than 15 Indian cities.
The competitors of Rebel Foods are Biryani By Kilo, Box8, FreshMenu, UberEats and there are other food tech unicorns such as Swiggy and Zomato. According to another latest news, the hospitality unicorn OYO is said to be looking for an extension in the cloud kitchen scope with the acquisition of FreshMenu.
The startup Biryani By Kilo (BBK) was funded by IvyCap Ventures in its Series A round. Another e-sports startup Mobile Premier League (MPL) based in Bengaluru has raised $35.5 million in Series A funding round along with Sequoia India and Times Internet.
GO-JEK’s interest in Cloud Kitchen
The cloud-kitchen model comprises of delivery-only restaurants and brand. This saves the costs on real estate and at the same time use a robust logistics network to reach more households.
Go-Jek is the ride-hailing firm and it is one of Asia’s hottest startups. Rebel has tied up with GoJek to offer its cloud kitchens in Indonesia. Rebel decided to stick to its original plan despite having a huge investor interest for raising $170-$180 million. They took this decision to avoid excessive stake dilution. At the same time, they were aware of not needing so much capital.
The media reports had indicated that the Rebel Foods has partnered with Go-Jek to begin cloud kitchens in Indonesia. The Coatue Management was expected to lead the Rebel Food’s Series D round with a $120 million investment. However, there has not been any official Coatue participation until now. According to the company filings, the Rebel Foods was last estimated at $198.7 Million (INR 1,416.33 Cr) on September 30, 2018.
The company is said to receive more than 30000 orders every day. In the first year itself, the company delivered the same kitchen sales-growth of 75%. This was much higher as compared to the industry average of 10% to 15% in terms of same-store sales growth.
Scope in Cloud Kitchen sector
The speedy growth of Online Food ordering sector generates new business opportunities for the existing & future restaurants to expand their business. The Cloud Kitchens business model is the upcoming trend. We all need the food delivered to our locations these days. Most of the restaurants collaborate with online food ordering portals like Zomato, Swiggy, etc. in order to ease their ordering processes.
Cloud Kitchens have fully implemented kitchens that you can find in most of the restaurants. But they don’t have dine-in or takeaway. These kitchens run solely for online delivery services. These businesses can help you to earn more and more profits with all your food deliveries and at the same time, you can provide satisfactory service to your customers.
Build an app like Go-Jek or Develop food delivery app for your Cloud Kitchen
The most important thing that business needs are being accessible to customers. Having an app for your business ensures that your customers are able to reach you. Coruscate has innovative technology and skilled developers to fulfill your requirements and deliver an on demand food delivery app which can help you to expand your business more.
If you are interested to learn more about the multi-purpose apps and cloud kitchens you can go through our blog links or you can connect with us through the contact us form. We will be happy to enlighten you about the scope and business models beneficial for your business at a free consultation session.