In a significant move within India's packaged foods sector, global private equity major Apax Funds has acquired a substantial minority stake in Bengaluru-based iD Fresh Food. The transaction, announced on Monday, involves Apax purchasing shares from existing investors Premji Invest and TPG NewQuest.
Deal Details and Strategic Backing
While the financial terms remain undisclosed, earlier reports from November suggested Apax was in talks to buy roughly 30% stake for about ₹1,200 crore. This investment is expected to value iD Fresh Food between ₹4,000 crore and ₹4,500 crore. Both Premji Invest and TPG NewQuest will continue to support the company alongside its founding team.
The founding group, led by co-founder P.C. Musthafa and his cousins, retains control. Musthafa stated that the infusion of capital from Apax will enable the company to accelerate growth, build manufacturing capacity, diversify its product portfolio, and expand its footprint into more cities and international markets.
Fueling Growth in a Competitive Market
This investment arrives at a pivotal time for the ready-to-cook and ready-to-eat segment in India, a market known for its challenges due to stiff competition and a deep-rooted consumer preference for freshly cooked meals. Rohan Haldea, a Partner at Apax, emphasized that the latest funding will bolster iD Fresh's next growth chapter in India and abroad.
Harjot Dhaliwal, Partner and Head of India at Apax, outlined the firm's planned collaboration: "We will work closely with the management team and leverage our consumer packaged goods expertise to accelerate growth. This includes expanding distribution into new cities and sales channels, strengthening the brand through marketing, driving innovation in adjacent categories, and using technology to optimize their fresh, daily-delivered supply chain."
iD Fresh Food's Journey and Financials
Founded in 2005 in Bengaluru, iD Fresh began with a simple mission: to make fresh, preservative-free, traditionally prepared Indian food accessible on a large scale. It started by supplying idli and dosa batter to local retailers and has since perfected a direct-to-retailer cold-chain model. This system ensures clean-label products with a refrigerated shelf life of five to seven days.
The company has grown to serve over 50 cities across India and the Gulf Cooperation Council (GCC) region. It claims to be India's largest ready-to-cook fresh foods brand and the category leader in branded batter, holding an estimated 50–60% market share in its core segments. Its product range now includes Indian flatbreads, chutneys, sambar, and value-added dairy products.
Financially, the company has shown robust growth. After reporting its first-ever profit of ₹4.5 crore in FY24, its profits surged to ₹25.87 crore in the subsequent year. Revenues also climbed significantly from ₹557.84 crore in FY24 to ₹681.37 crore, as per an Entrackr report. The company maintains double-digit EBITDA margins.
Looking ahead, iD Fresh aims to deepen its penetration in existing markets, launch new product innovations, and accelerate channel expansion, banking on the growing consumer shift towards fresh, convenient, and clean-label food solutions.
