Rebel Foods in Talks to Exit Premium Chocolate Brand Smoor

Picture this: You're building a food empire, acquiring premium brands left and right, then suddenly you're restructuring and considering exits. That's exactly what's happening with Rebel Foods right now, and it's a masterclass in startup pivoting.

Rebel Foods, the powerhouse behind beloved brands like Faasos and Behrouz Biryani, is currently in discussions to sell its 57% stake in premium chocolate maker Smoor. This move comes as part of a broader operational restructuring that has already seen the company shut down offices in Gurugram and Bengaluru.

Here's the fascinating part: just three years ago, Rebel Foods acquired Smoor for over $50 million, positioning it as a cornerstone of their ambitious brand aggregator strategy. They had big dreams—investing up to $150 million in food brand acquisitions and projecting Smoor would hit $100 million in annual revenue by 2026.

But reality hit differently. While Smoor managed a 16% revenue increase to Rs. 149 crore in FY24, its losses widened significantly—from Rs. 17 crore in FY23 to Rs. 19 crore in FY24. This trajectory tells a story many entrepreneurs know all too well: sometimes the most strategic move is knowing when to let go.

Rebel Foods' potential exit from Smoor isn't just about one chocolate brand—it's a reflection of the broader challenges facing the cloud kitchen industry and food tech aggregators. The company's willingness to restructure and potentially divest shows the kind of agile decision-making that separates surviving startups from those that don't.

For young professionals and entrepreneurs watching this unfold, there's a crucial lesson here: successful businesses aren't just about acquiring assets—they're about knowing which ones to keep and which ones to release. Sometimes, the most rebellious thing you can do is admit when it's time to change course.