iD Fresh Food eyes Rs 450 crore at Rs 2,000 crore valuation
Ready-to-cook product company iD Fresh Food has no plans to slow down. The Bengaluru-based company, whose name has become synonymous with the dosa-idli batter that it brings to stores, is well-poised for an aggressive phase of growth as the company looks to add more products with a longer shelf life, in addition to geographic expansion plans.
The 16-year-old company has an impressive strike rate, despite the pandemic-induced blues. The business from e-commerce has grown by 10 times since the pandemic and has evolved into a large channel for the company. Before COVID-19 struck, the sales from its e-commerce arm accounted for only 3-4 percent of the revenue but have since grown to 15 percent.
The company with a zero-debt start-up that adheres to its motto of “never borrowed and never will” is currently in the producer of raising funds. Naturally, the million-dollar question is whether an IPO is on the cards for iD Fresh. "Our focus will be to add more products with freshness as a take on it. Until a couple of weeks ago, I was against it. But now, I’m seriously evaluating the possibilities of a public issue. Nothing is certain for now though,” said PC Musthafa, Co-founder and CEO, iD Fresh Food.
E-commerce sales for iD Fresh Foods comprised Rs 60 lakh per month in March, while it grew to Rs 6 crore per month in the current quarter.
As a brand, the company has grown from Rs 100 crore in 2014 to Rs 500 crore in 2017 and is currently valued at a whopping Rs 2000 crore.
Founded by Musthafa and his cousins in 2005-06, iD Fresh has now an entire gamut of fresh food and beverage items, including filter coffee liquid, tender coconut, grated coconut, paneer, and curd, among others.
“We started selling paneer three to four years ago. This month our turnover from paneer alone was Rs 4.5 crore,” Musthafa said. Similarly, curd, which was introduced later, brings in about Rs 2 crore in revenue per month. “This gives us more confidence to get into more clean-labeled products,” he added.
iD Fresh has more than 30,000 outlets across 45 cities in India, the UAE, and the US. Cashing in on the massive demand for its products, iD Fresh is eyeing aggressive expansions to international markets. The UAE, which it ventured into seven years ago, has grown to become its Uno numero market in terms of revenue at Rs 100 crore per year. iD Fresh has set shop in Oman recently and is starting soon in Saudi Arabia, Bahrain, Kuwait, and Qatar.
The company, which has an idli batter factory each in Bengaluru, Mumbai, Hyderabad, and Dubai, is planning to start three facilities in the US. It has tied up with a team in the US for the same and should be operational this financial year. In addition, Musthafa & Co is also eyeing Singapore, Indonesia, and Malaysia for expansion.