The financial specifics of the deal haven’t been revealed, but iD Fresh Food’s Chairman and Global CEO, PC Musthafa, characterized the collaboration as a “defining moment” for the company, which has led the branded idli-dosa batter market in India and expanded into a broader range of fresh, ready-to-cook foods.
“Apax chose to invest in their inaugural consumer brand in India because they resonate with the narrative of freshness and clean-label food,” Musthafa mentioned in a CNBC-TV18 interview. “We also see an opportunity to expand into international markets, which influenced their decision to partner with us.”
Current investors Premji Invest and TPG NewQuest have partially divested but maintain their investments, signaling confidence in the company’s future growth trajectory.
IPO pathway and financial clarity
iD Fresh Food aims to achieve global revenues of ₹1,100 crore in the upcoming financial year, with an internal EBITDA target of nearly 20%. The company plans to pursue an IPO once it reports its FY27 results, with the offering expected in October 2027.
“Our strategy is to pursue an IPO following the release of our FY27 figures. That has been the plan from the start,” Musthafa stated, emphasizing that Apax’s involvement would significantly bolster iD’s journey in public markets. “It’s a fantastic brand to have on board.”
The recent funding round was primarily secondary, yet Musthafa noted that iD opted for Apax over various competitors due to the firm’s capability to provide strategic value beyond mere capital, especially as the company gears up for its future as a publicly-listed entity.
Beyond just a batter company
iD Fresh Food holds an estimated 50–60% market share in its primary categories and operates in over 200 cities across India, with plans to expand to an additional 100 cities this year. Musthafa believes that iD’s primary competitive edge lies not in its products but in its distribution prowess.
“While many perceive iD as a batter company, our strength lies in being one of the top fresh food distributors globally,” he asserted. “We excel in daily fresh food production, ensuring each store is replenished daily while remaining profitable.”
The company’s direct-to-retailer cold-chain model, designed for perishable products, is challenging to replicate on a large scale and is crucial for its ability to grow profitably in a sector where margins are typically narrow.
Growing the category, not combatting rivals
As competition heats up in the clean-label and fresh foods arena, iD is concentrating on expanding the overall market rather than merely defending its position against packaged competitors.
“With a 60–70% category share, considering local brands as competition is an ineffective strategy,” Musthafa explained. “The true competition lies with home grinders. The challenge is shifting consumers from homemade batter to ready-made options.”
Also Read | From a small Bengaluru kitchen to a global fresh food brand: The iD Fresh Food story
This strategy of converting categories is now being applied to related products like chutney and sambar, which iD has introduced in the past year. The company is also present in flatbreads and is carefully assessing new categories where a fresh, preservative-free approach is feasible.
“One principle we will always adhere to is avoiding products with chemicals and preservatives,” Musthafa affirmed. “Growth at any cost is not the philosophy of iD.”
Global aspirations and M&A possibilities
Apax’s global consumer brand expertise is anticipated to aid iD’s international growth, especially in the Gulf markets where the company already operates. Musthafa also hinted at considering inorganic growth opportunities as iD expands.
“Apax brings a robust network in the international business and consumer brands sector worldwide, along with potential M&A opportunities,” he noted.
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