iD Fresh Food, India’s one of the fastest-growing and innovative fresh food start-ups, announced the closing of its Rs 507 crore Series D round of funding.
In one of the largest deals in the food start-up space, the round was led by NewQuest Capital Partners, Asia’s leading secondary private equity firm along with the existing investor, Premji Invest.
iD’s constant endeavor to create a fresh and healthy revolution in the fresh food space, coupled with its iconic and consumer-friendly innovations, has made the company one of the most popular brands in the country and overseas.
Testimony to iD’s incredible growth story is Helion Ventures’ exit with a multi-bagger 10X return. Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion. The strategic fundraise reflects the brand’s ambition to further strengthen its market leadership in the fresh foods business, foster product innovation, build capacities and expand its presence across key markets in India, the UAE, and the US. As part of its global expansion plans, the company plans to extend its presence to Singapore, Malaysia, and other markets in the near future.
Founded by PC Musthafa, Abdul Naser, and his brothers in 2005, iD had secured $ 5.2 million in Series A funding from Helion Ventures in 2014 and $ 25 million from Premji Invest in 2017. From humble beginnings, iD has grown to become one of India’s most loved food brands and has been recognized for its innovative yet simple solutions to problems faced by people in the kitchen.
The company has witnessed unprecedented growth across all its categories and channels - and is on track to achieve Rs 500 crore in revenue (run-rate) for the current fiscal year, despite the pandemic and related challenges in the last two years. Last year, the company launched the world’s largest idli-dosa factory at Anekal in Karnataka with a CAPEX investment of close to Rs 50 crore. Its fully automated giant kitchen produces over one lakh kg batter and three lakh parotas per day.
PC Musthafa, Co-founder and CEO, iD Fresh Food said, “iD is a people’s brand, driven by high ethical standards. Values are vital to our growth. I’m grateful to our loyal customers for their constant love and support. iD is what it is today because of them, and because of the strong commitment of our team to find solutions to common, everyday problems. The fundraiser is yet another milestone in our journey but the ride has just begun. In the coming years, we will expand our presence across channels and geographies, strengthen our supply chain practices and introduce innovative products that will redefine the packaged fresh food space not just in India, but across the globe.”
“I’m pleased to have NewQuest Partners as our new investor on board and thank Premji Invest for continuing to support iD in its journey. I believe that their confidence in us is testimony to iD’s continued growth and commitment towards building a sustainable and healthy future for all. I also thank the team at Helion for their constant support all these years and believing in us during tough times,” he further added.
Amit Gupta, Partner and Head of India and Southeast Asia, New Quest Capital Partners said, “While there is a large opportunity set in the fresh food space, iD has a clear edge as a market leader with its deep understanding of consumer preferences and ability to innovate real-time and define industry benchmarks. Its undisputable leadership position is a testament to the quality of the founding team and the innovative and people-oriented business they have created. We’re excited to be a part of their journey and a part of the consumer revolution that they’re driving.”
Jaipal Singal, Chief Financial Officer, iD Fresh Food said, “At a time when businesses across the globe are trying to navigate the economic recovery, iD is among the few companies that have stayed true to its purpose – despite all odds. Over the years, iD has been consistently delivering strong revenue retention metrics against a robust corporate governance model. Our solid growth fundamentals and market dominance in flagship categories make iD an undisputed leader.”
“We’re well poised for an aggressive phase of growth with plans to launch an IPO in the next few years, creating a billion-dollar enterprise and solidifying our longstanding leadership position in the fresh food category. We’re confident that we will continue to grow and provide immense value to our patrons and investors,” he added.
To unlock the billion-dollar opportunity in the direct-to-consumer (D2C) space, iD has been pivoting and transforming its distribution model and investing heavily in fostering its online presence.
Rahul Garg, Partner, Premji Invest said, “iD’s sales from e-commerce have grown by 300 percent reflecting the massive growth opportunity that D2C promises. To provide consumers with broader access to iD’s products, iD has also partnered with BigBasket to launch a co-branded label, iD Fresho.”
”The company intends to reach a million households in India with its D2C business and leverage its superior unit economics compared to all fresh food companies including the ones in the D2C space. It is well-positioned to continue building on all channels and platforms in creating a seamless and delightful experience for its customers globally,” he added.
Talking about Helion’s exit, Rajiv Kataria said, “We identified the potential of iD early on. We were very impressed with the team at ID. We’re glad that we could create substantial value in our association with them. We wish them luck and are sure that they will continue to delight their customers with innovative products.”
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