In a move that aims to democratize wealth creation and recognize employee dedication, Rebel Foods, the leading cloud kitchen platform, has granted employee stock ownership plans (ESOPs) to an additional 5,000 employees across its 350-plus kitchens and corporate offices in India, the UAE, and the United Kingdom. This latest development brings the total value of ESOPs held by Rebel Foods employees to an impressive $65 million (INR 550 crore), making it the first foodtech company in India to distribute ESOPs at such a wide scale.
The distribution of ESOPs comes on the heels of a recent round of layoffs, in which approximately 2% of the workforce was affected. However, the company remains committed to creating opportunities for wealth creation and rewarding its employees. Additionally, Rebel Foods successfully raised a debt of INR 55 crore ($6.6 million) in December last year, further solidifying its financial position.
Through the ESOP program, Rebel Foods provides a chance for wealth creation for various roles within the company, including kitchen staff, riders, and runners. This initiative underscores the startup’s dedication to recognizing its employees’ passion, customer centricity, and performance.
Ankur Sharma, the co-founder of Rebel Foods, expressed his enthusiasm for the ESOP program, stating, “Through this ESOP program, we aim to democratize wealth creation for our team and recognize their passion, customer centricity, and performance. We will continue creating similar opportunities in the future while rewarding our employees.”
In addition to granting new ESOPs, Rebel Foods held an ESOPs liquidation program for existing holders for the second consecutive year. This initiative allowed current and former employees to liquidate their vested options, reinforcing the startup’s commitment to providing liquidity and empowering its workforce.
Rebel Foods, founded in 2011 by Jaydeep Barman and Kallol Banerjee, has emerged as a major player in the cloud kitchen space. With over 45 brands under its umbrella, including popular names like Behrouz Biryani, Faasos, SLAY Coffee, Mandarin Oak, The Good Bowl, and Ovenstory Pizza, Rebel Foods operates across multiple international geographies.
The company has garnered significant support from prominent investors, including Goldman Sachs, Sequoia Capital India, InnoVen Capital, Trifecta Capital, and Qatar Investment Authority (QIA). This backing has allowed Rebel Foods to expand its operations and establish a strong foothold in the foodtech industry.
Despite the challenges faced by the industry, Rebel Foods remains resilient, continuously driving growth. In the fiscal year 2022, the company’s net loss widened by 55% year-on-year (YoY) to INR 564.4 crore, while its operating revenue surged by an impressive 111% to INR 858.6 crore.
The allotment of ESOPs and the rising trend of buybacks in the Indian startup ecosystem have been fueled by increased funding in recent years. In 2022 alone, Indian employees received over $196 million through ESOP buybacks, highlighting the value placed on employee ownership and participation.
Rebel Foods’ commitment to empowering its employees and fostering wealth creation sets a new standard in the foodtech industry. With its innovative approach and expanding portfolio of brands, the company is well-positioned to shape the future of cloud kitchens and continue making a mark in the global culinary landscape.