Rebel Foods, the Mumbai-based cloud kitchen startup behind brands like Faasos, Oven Story, and Behrouz Biryani, is negotiating a $120 million funding round led by Singapore’s Temasek. This new round, if completed, will mark another significant investment in the Indian startup ecosystem, echoing the large funding rounds seen recently by startups like Zepto and Meesho.

The funding is being sought at a blended valuation of approximately $1 billion. Of the $120 million, about $60 million will be used as primary capital for business expansion, including new offline ventures, while the remaining will be secondary capital, involving the sale of existing shares. Investors such as Coatue and Lightbox are expected to sell shares, with valuations for these secondary transactions estimated between $700 million and $800 million. Rebel Foods’ primary funding push is expected to push its valuation to around $1.3 billion, resulting in a blended valuation of $1 billion.

Temasek has not commented on the deal, and Rebel Foods has denied that it is at an advanced stage of negotiations. The company maintains that discussions are ongoing and that it is evaluating potential strategic partners for its next growth phase.

This round follows a similar large funding event in July 2021, when Rebel Foods raised over $100 million at a $1 billion valuation, entering the unicorn club. Since then, the company’s valuation had peaked at $1.4 billion but has now adjusted back to around $1 billion. Despite the recalibration in valuation seen across many late-stage startups, Rebel Foods has managed to reduce its monthly cash burn from Rs 50 crore to Rs 25 crore through cost-cutting measures.

For FY23, Rebel Foods reported a revenue of Rs 1,258 crore, a 39% increase from the previous year, though it also faced a loss of Rs 657 crore, up 23% from FY22. The company’s current annualized revenue run rate stands between $220 million and $240 million.