Helion Venture Partners-backed iD Fresh Food India Pvt. Ltd is working to expand its product offering. It is planning to launch two new types of ready-to-cook batter in the coming months. The company also aims at generating Rs 1,000 Crore revenue by 2020 with exports to the US and the UK markets.
P.C. Musthafa, co-founder and chief executive, iD Fresh Food. said, “We’re launching vada batter in the market in the next three months. We’re also looking at ragi dosa and idli batter.”
The firm, with its ragi doasa and idli batter,will be focusing on to an ongoing emergence of ragi as an alternative food and part of a growing health-food movement worldwide.
iD Fresh Food, which has its headquarters in Bengaluru, is also experimenting with wet sambhar and chutney pre-mixes. Earlier, iD Fresh Food had launched traditional tomato and coriander chutneys, but the products didnt’t worked out too well. Hence, the company withdrew those products from the market six months ago.
Musthafa said ,”Customers were not used to paying for chutney since restaurants typically give it free along with idlis, vadas and dosas. Hence, for the pre-mixes, we may experiment with combo packs along with their regular batter.”
Harminder Sahni, managing director of retail consultancy firm Wazir Advisors, said, “Whatever they have done so far, they have done it pretty well. I think they have a lot of potential in the existing products itself, but my firm belief when it comes to consumer brands is that once you have created a brand, you need to expand the product portfolio.”
According to Mustafa, “On 8 March, the firm announced that Premji Invest, the investment arm of Wipro chairman Azim Premji, had picked up a significant minatory stake in iD Fresh Food for an undisclosed amount of investment. Most of the money the company raised will go into setting up large manufacturing facilities, followed by marketing and research and development.”
The company is also planning to export to markets like the US and the UK this year but termed that as an experiment and said the focus still remains on India.
Outside India, iD Fresh Food’s largest market right now is Saudi Arabia. In India, its biggest markets are Bengaluru, Chennai, Hyderabad and Mumbai. However, the company plans to change the order.
Mustafa added, “About 30-40 years back we used to buy wholewheat, wash it, dry it in sunlight, take it to the mill and then bring it back to make chapatis. We can’t tell this story to our kids now because they’ll laugh at it. And in the next 20 years, you will see the same thing happening in idly dosa batter as well.”
Dosa maker iD Fresh Food on Tuesday announced that it has raised Rs 507 crore Series D round of funding from Hong Kong-based private equity firm NewQuest Capital Partners, others.
The funding round also saw participation from existing investor, Premji Invest, with Helion Venture exiting the Bengaluru-based company at 10x returns.
"The fund raise 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,” shared PC Musthafa, CEO, iD Fresh Food.
The company is planning to expand its presence in Singapore, Malaysia and other markets in the near future.
Founded by PC Musthafa, Abdul Naser and his brothers in 2005, iD Fresh had secured $5.2 million in Series A funding from Helion Ventures in 2014 and $25 million from Premji Invest in 2017.
“While there is a large opportunity set in the fresh food space, iD has a clear and as a market leader with its deep understanding of consumer preferences and ability to innovate real-time and define industry benchmarks,” said Amit Gupta, Partner, NewQuest Capital.
The Bengaluru-based brand manufactures and sells ready-to-make foods like idli/dosa batter, parotas, vada batter, chapati, paneer, among others.
Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion.
The company is also aiming at strengthening 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.
“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,” added CFO Jaipal Singa.
Bengaluru-based iD Fresh Food has filed a complaint with the WhatsApp Grievance Cell and Cybercrime, Bengaluru, after fake information that claimed its products contain cow bones made headlines on social media platforms.
A recent WhatsApp forwards and messages have been circulating on social media platforms, including Twitter and Facebook, claiming that the dosa and idli batter sold by iD Fresh Food India contain cow bones and calf rennet.
Started in 2005 by Musthafa P.C., iD Fresh has become a household name today with strong presence in India and globe.
Also Read: iD Fresh Food to target price sensitive markets with its new brand
As per the message being circulated, it advised Hindus against consuming products sold by the company.
The forwards also claim that the company employs only Muslims and its products are Halal certified. The messages also highlight the company’s 2014 fundraise, claiming it was the country’s first venture capital deal to “adhere to strict Shariah Islamic Law" as per the request of the company management.
iD Fresh has denied the rumours calling them “baseless allegations" intended to malign the brand, the company said in a statement on Wednesday. The brand is also taking a legal route to tackle the rumour.
“In the last few days, iD Fresh has been receiving social media forwards carrying misleading and false information about the company using animal extracts in its products. We condemn the spread of such malicious rumours and misinformation and have taken the legal route to rightfully tackle this issue. We, at iD Fresh Food, would once again like to outrightly deny any of these baseless allegations that are purely intended at maligning the brand," said the statement.
The company also said that they use only vegetarian ingredients to make its products. “We proudly manufacture healthy and authentic Indian products- with no chemical and preservatives inside our world-class, state-of-the-art manufacturing facilities that fully comply with the Food Safety Management System,” it added.
Backed by Azim Premji’s owned Helion Venture Partners, it is present across 45 cities across India, UAE and the US.
May Interest: Premji-backed iD Fresh Food to sell organic packaged food
“While we continue to abide by the law of the land, we at iD would like to extend our full support to Governments, institutions and corporates who are also fighting the online fake news menace," the company said by pointing that such baseless and fake propaganda is unfortunate and it undermines the trust of millions of iD customers.
iD Fresh Food (India) Pvt Ltd has launched a flanker brand iD Daileez to target the traditional price sensitive markets. Through this new brand, the Bengaluru-based start-up is eyeing at catering to customers in key regions including Chennai, Kochi, Coimbatore, and Kozhikode.
At present, the food brand has introduced a 1 kg pack of idly and dosa batter at a competitive price of Rs 49.
PC Musthafa, CEO and Co-Founder, iD Fresh Food, said, “iD Fresh’s flagship product, the idly and dosa batter, has been a pioneer in the fresh, preservative-free, ready-to-cook category. With iD Daileez, we are looking to compete in the ever-growing batter category, without damaging the existing product’s market share, while catering to extremely price-sensitive consumers.”
“iD Daileez will help us reach out to the consumers, who typically do not have access to high-quality products that are made in hygienic conditions. We are keen to strengthen our hold in the Rs 35-50 price category in target cities to make our products easily accessible to all Indians. For this financial year, we have set a target of Rs 200 million for iD Daileez,” he added.
ID Fresh Food, the packaged fresh food brand, has entered into the US market with filter coffee. Launched in India and UAE in 2018, the Azim Premji-backed company has taken its ready-to-use South Indian filter coffee decoction to stores in US cities like San Francisco, Los Angeles, New York, and Chicago.
The filter coffee will be available in 30ml single serve sachets in the US market. The company is planning to ship 150 ml family packs to the US followed by exports to Canada, Australia, and South-East Asia markets.
Known for its idly, dosa and vada batter, ID had registered filter coffee decoction sales worth Rs 6 crore in India, UAE and US between September 2018 and March 2019.
Musthafa PC, co-Founder, ID Fresh Food, said, “We were waiting for the US FDA clearance to expand into the huge US market. Given the encouraging coffee sales in India and the UAE, we decided to take the plunge with our latest offering.”
“The filter coffee decoction is present in around 600 stores in the US. The aim is to reach 5000 stores in the next six months, clocking in monthly revenues to the tune of Rs 1 Crore. In India, we are expecting to touch Rs 300 crores from our coffee sales by mid-2020,” he added.
Besides expanding overseas, the company has also unveiled the filter coffee decoction in North India including NCR, Delhi, Ahmedabad, and Kolkata.
Azim Premji-backed iD Fresh Food is planning to turn its entire offering into organic products in the course of the next 6-12 months, foraying into the organic foods market.
In a phase-wise transition beginning from Bengaluru, the Bengaluru-based packaged foods company has replaced its flagship offerings, Idly and Dosa batter, Parota and variants of the batter such as Wheat and Oats Dosa batter, Rice Rava Idly batter, Ragi Idly and Dosa batter, with the new organic version on all the store shelves.
iD Fresh Food is also eyeing to replace its other existing products offering like Natural Paneer, Filter Coffee Decoction, Wheat Chapati and Vada batter with its organic avatar over the next few months.
Mustafa PC, Co-Founder and CEO, ID Fresh Food, said, “A significant portion of the company’s revenue growth in the next one year would be on account of its organic push, while also coming from growing its distribution base and being present in more stores.”
“We started moving to organic two years ago and we should finish it in the next one year. Our products will have all the necessary certification for organic in the farming stage, storage and the entire supply chain. We essentially want to democratise organic food for consumers and there’s the added benefit of it being better for farmers as well,” he added.
In order to revolutionise the coffee industry, iD Fresh Food, funded by Premji Invest, Azim Premji's investment arm, and Helion Venture Partners, has entered the filter coffee decoction segment.
iD Fresh is eyeing Rs 50 crore revenue from its authentic filter coffee decoction by the next fiscal year.
With this launch, iD Fresh is foraying into the filter coffee business. The company's filter coffee decoction comes in the form of ready-to-use liquid (decoction) rather than the conventional powder form available in the market.
Musthafa PC, CEO and Co-founder of iD Fresh Food, said, "We, at iD Fresh, are keen to help our customers overcome this barrier by offering the perfect decoction made of the finest coffee beans. You don't need any special equipment, skilled hands, or loads of time to make filter coffee now."
"With iD Fresh's Filter Coffee Decoction we have simplified the process, such that it not only appeals to your sense of smell and taste buds, but also brings back happy nostalgia. When Indians travel abroad, we hope our coffee sachets become a companion - something to make them feel at home in a foreign land," he added.
The decoction is launched in 17 cities across India. It is made available in 20 ml and 150 ml pack priced at Rs 10 and Rs 80, respectively.
ID Fresh Food is planning to bring readymade coffee decoction, which will compete with coffee decoction brands like Bayars, TrueSouth and Madcaf.
By launching the coffee decoction brand, ID is hoping to wean consumers away from coffee powder makers like Nescafe and Bru. ID Fresh Food has become popular with its idli, dosa and most recently vada batter.
PC Musthafa, Co-founder & CEO of ID Fresh, said, "Just like vadas, filter coffee has nearly disappeared from our homes. Today, instant coffee has become the norm. No one has the time to select graded Arabica and Robusta coffee beans, chicory; get them roasted, ground and then left to steep in boiling water the previous night. We are hoping our filter decoction will have the taste of grandma's hand. We’ve done two years of research."
"Now, with coffee, it’s the same thing. South Indians are very fussy and particular about the taste of their filter coffee. We wanted to stick with our 100% natural tagline. So in lieu of using additives to extending shelf life, we came up with a unique vacuum-sealing technology for our packs. Our shelf life, just because of our uniquely designed 3D pack, is three months. Homemade filter coffee decoction, depending on the weather, has a shelf life of just 1-2 days," Musthafa added.
The Premji-backed iD Fresh Food is planning to foray into the North Indian market by early next year. The company will first enter Delhi and Kolkata.
With this expansion, a ready-to-cook food company aims to reach Rs 10 billion in revenues within the next five years.
PC Musthafa, Founder and CEO of iD Fresh Food, said, “For now, we will use our existing manufacturing units in Hyderabad and Mumbai to cater to the markets in North India. Both these plants have a production capacity of 50,000 kg batter per day.”
The company also has production units in Bengaluru, Chennai, and Dubai. These units are serving the UAE market. By the end of this financial year, the Dubai plant will also start supplying to Oman and Saudi Arabia.
“We are also in talks to enter developed markets such as the US and UK as we think our products will be well accepted by the large Indian diaspora in those countries. Hopefully, this may happen by end of FY20,” Musthafa added.
iD Fresh Food reaches over 100,000 homes with its products. These products have a shelf life of up to seven days.
Presently, the company is generating 75% of its Rs 2.75 billion revenues from Southern states and Maharashtra. The rest is generated by the UAE.
The Premji-backed iD Fresh Food is planning to foray into the North Indian market by early next year. The company will first enter Delhi and Kolkata.
With this expansion, a ready-to-cook food company aims to reach Rs 10 billion in revenues within the next five years.
PC Musthafa, Founder and CEO of iD Fresh Food, said, “For now, we will use our existing manufacturing units in Hyderabad and Mumbai to cater to the markets in North India. Both these plants have a production capacity of 50,000 kg batter per day.”
The company also has production units in Bengaluru, Chennai, and Dubai. These units are serving the UAE market. By the end of this financial year, the Dubai plant will also start supplying to Oman and Saudi Arabia.
“We are also in talks to enter developed markets such as the US and UK as we think our products will be well accepted by the large Indian diaspora in those countries. Hopefully, this may happen by end of FY20,” Musthafa added.
iD Fresh Food reaches over 100,000 homes with its products. These products have a shelf life of up to seven days.
Presently, the company is generating 75% of its Rs 2.75 billion revenues from Southern states and Maharashtra. The rest is generated by the UAE.
iD Fresh Food, the maker of ready-to-cook dosa and idli batter, is preparing to enter the US, United Kingdom and Singapore this year to cater to the teeming Indian diaspora in those countries.
The company’s packaged batter, Indian breads and other foods are already popular in the United Arab Emirates, which has large populations of Indians.
PC Musthafa, Chief Executive, iD Fresh Food said, "We are already sending a test container to the US, while we will partner with a local manufacturer for the UK market. We will also be sending to Singapore from our Chennai facility."
iD Fresh raised Rs.150 crore from PremjiInvest, the private investment office of Azim Premji. The office has picked up a 25% stake in iD Fresh at a post-investment valuation of Rs.600 crore, according to a person familiar with the deal terms. Musthafa declined to disclose the deal terms.
Helion Ventures, which invested about Rs.35 crore in iD Fresh in October 2014, holds another 25% stake in the company.
Rahul Garg, partner at PremjiInvest, will join iD Fresh’s board.
Garg said, "There exists a billion-dollar opportunity in the space, where iD Food has clear market leadership due to its first-mover advantage."
Musthafa, Founder, iD Fresh, said, "We will use the funds raised in the latest round to build as well as upgrade our existing facilities, establish new distribution networks and in R&D as well as marketing."
The CEO said, "We will be looking to build smaller units overseas and scale them up based on market demand."
The company expects to end fiscal year 2016-17 with a turnover of Rs.150 crore, below its targeted Rs.170 crore and is targeting a turnover of Rs.1,000 crore by 2021.
He said, "Our manufacturing capacity for batter and parota will increase almost six-fold to 300,000 kg from four large plants in India and one in Dubai."
R Natarajan, chief operating officer at Ratan Tata’s investment vehicle RNT Capital, is bullish about iD Fresh.
“The demand for iD’s products is inelastic because they meet needs of the middleclass,” said Natarajan, a member of the company’s board.
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