Cloud kitchen venture Faasos to raise $ 100 million in new financing round .

Multiples Alternative Asset Management, Temasek, Goldman Sachs, Falcon Edge and Canadian Pension Plan Investment Board are among a clutch of domestic and global investors that have held talks to back cloud kitchen platform Faasos, people familiar with the negotiations told ET. The Mumbai-headquartered Rebel Foods, which runs Faasos, is in the process of raising $75-100 million, and a deal could value the eight-year-old venture at about $400 million, they said. 

Founded by Jaydeep Barman and Kallol Banerjee, Faasos is a multi-brand cloud kitchen which sells its products via food delivery companies like Swiggy and Zomato as well as independently through its app.In January, the company raised $4.2 Mn from Alteria capital in a secured, redeemable non-convertible debt to enter overseas markets and expand both its product range and cloud kitchen presence nationally.

It counts backers such as Sistema Asia Fund, Lightbox Ventures II, Lightbox Expansion Fund, Sequoia Capital India, RuNet South Asia, and RB Investments, Evolvence India among others.Faasos has nine in-house brands such as Oven Story, Firangi Bake and Mandarin Oak. The company currently has 175 cloud kitchens across 12 cities in India and receives almost 30K daily orders.

Cloud kitchens such as Faasos earn better margins compared to food aggregators like Swiggy and Zomato and brick-and mortar restaurants, because they sell their own brands, and they can utilise one central kitchen to service multiple brands. 

Zomato and Swiggy contribute around 50-60% of Faasos’ overall orders, said a person privy to the details. 

But in the recent past Swiggy — which is in talks to acquire UberEats India business, has been shoring up its private brands and wants to build its own cloud kitchen capabilities, which may become challenging for a player like Faasos.