The ‘world’s largest internet restaurant company’ quietly raised $125 million this month
In May, venture capitalist Michael Moritz of Sequoia Capital warned in a Financial Times column that Amazon’s recent $575 million investment in the London-based delivery service Deliveroo could prove ominous for local restaurants. Wrote Moritz: “Amazon is now one step away from becoming a multi-brand restaurant company — and that could mean doomsday for many dining haunts.”
Moritz was right to attract more attention to the deal. Deliveroo has begun operating shared kitchens from which it will not simply transport food to customers but eventually prepare it, too. His warning may even have played a role in the recent decision of Britain’s competition regulator to halt work on Amazon’s investment so it can first investigate whether the deal poses competitive concerns.
Moritz knows the playbook because of Sequoia’s early investment in Rebel Foods, formerly known as Faasos, a once-small Pune, India-based company that now prepares a variety of foods in its cloud kitchens. As he says in the same column, Faasos largely pioneered the trend.
The growth of the nine-year-old company is a bit breathtaking — and instructive. According to Bloomberg, Rebel — which this month raised $125 million in fresh capital from the Indonesian delivery service Go-Jek, Coatue