Rebel Foods Plans Exit from Premium Chocolate Brand Smoor Amid Restructuring

Rebel Foods, the cloud kitchen giant behind popular brands like Faasos and Behrouz Biryani, is actively exploring a sale of its majority stake in Smoor, a premium chocolate and dessert brand. According to a report by The Economic Times, the company initiated this move as part of its broader strategy to streamline operations and focus on core businesses.

Rebel Foods acquired a 57% stake in Smoor in April 2022, valuing the premium chocolate maker at over $50 million. The company had positioned the acquisition as a strategic expansion under its plan to become a leading F&B brand aggregator. Rebel Foods also announced intentions to invest up to $150 million in acquiring and scaling food brands. However, the company has not disclosed how much capital it has actually deployed.

Rebel Foods Shuts Down Offices to Recalibrate Focus

In a significant operational move, Rebel Foodss shut down its Gurugram and Bengaluru offices. This step highlights the company’s decision to prioritize efficiency and recalibrate its growth trajectory. With this shift, Rebel Foods appears to be concentrating on strengthening its cloud kitchen operations while reconsidering non-core brand investments.

Although the company has not finalized a deal or confirmed a buyer for its stake in Smoor, the potential exit signals a new phase in Rebel Foods’ strategy—one that favors profitability and sustainable growth over aggressive expansion.

Smoor Faces Financial Challenges Despite Revenue Growth

At the time of acquisition, Rebel Foods projected that Smoor would triple its revenue in FY23, with a bold target of reaching $100 million in annual revenue by 2026. However, Smoor’s financial performance shows a mixed picture. According to Tracxn, the brand recorded a 16% revenue growth in FY24, reaching ₹149 crore. But its net losses widened to ₹19 crore, up from ₹17 crore in FY23 and ₹10 crore in FY22.

These figures reveal the challenges Smoor faces in scaling operations while competing in the high-end chocolate and dessert segment—a category that demands premium branding, consistent quality, and customer loyalty.

Rebel Foods Reassesses Its Brand Aggregation Strategy

By initiating a stake sale in Smoor, Rebel Foods appears to be reassessing its brand aggregation strategy. The company now seems more focused on its proven cloud kitchen model rather than spreading resources across premium and niche segments. Rebel Foods may choose to double down on successful brands under its umbrella and exit from ventures that no longer align with its revised goals.

If Rebel Foods finalizes the divestment, the move could mark a significant shift in the Indian D2C F&B ecosystem, where brand acquisitions once fueled rapid expansion.

What’s Next for Rebel Foods?

While Rebel Foods hasn’t commented publicly on the potential deal, industry insiders are closely watching the developments. This shift in strategy reflects a growing trend where companies focus on profitability, operational agility, and market-fit, especially as investor sentiment becomes more cautious.

Rebel Foods’ future moves could influence how other food-tech players approach brand partnerships and expansion, especially in premium verticals like desserts and chocolates.