Major Stake Sale in the Making for iD Fresh
Bengaluru-based food company iD Fresh Food is currently in advanced discussions to sell approximately a 30% stake to a consortium of global private equity heavyweights. The deal, valued at around ₹1,200 crore, is set to place the overall valuation of the company in the range of ₹4,000 to ₹4,500 crore, according to sources familiar with the matter.
Investors and Strategic Shifts Ahead of Public Listing
The potential investors include major firms such as Permira, Carlyle, Apax, and L Catterton. This transaction is primarily a secondary sale, meaning existing shareholders are selling their stakes to new investors. A significant part of this sale will provide a partial exit for Premji Invest, which first backed the company in 2017. The investment arm is expected to offload nearly half of its holding. Additionally, TPG NewQuest might also sell a small portion of its stake depending on the final agreement.
This strategic realignment of the company's capitalization table is a key step as iD Fresh prepares for its next growth phase and a potential Initial Public Offering (IPO). The company has previously indicated its ambition to list on public markets by the end of the fiscal year 2027, contingent on favorable market conditions.
From Batter to Billion-Dollar Brand: The iD Fresh Journey
Founded in 2005 by P.C. Musthafa and Abdul Naser, iD Fresh captured the market by addressing the needs of young professionals living away from home with its range of ready-to-cook products, starting with its famous idli and dosa batter. Over the years, it has raised over $120 million from investors. Its last major fundraise was a ₹507 crore Series D round led by TPG's NewQuest Capital Partners, which fueled expansion into new markets like the UAE and the US.
The company has recently shifted focus towards premiumization and product innovation. In the fiscal year 2025, it launched over 10 new products, including spice blends and ready-to-heat items like sambhar and chutneys. This strategy has paid off financially. After posting its first-ever profit of ₹4.5 crore in FY24, the company saw its profits surge to ₹25.87 crore in the subsequent year. Revenue also grew impressively, reaching ₹681.37 crore from ₹557.84 crore in FY24.
Despite intense competition in the ready-to-eat segment and a cultural preference for fresh food in India, iD Fresh sees a massive opportunity. With an estimated 80% of the packaged food market still unorganized, the company is well-positioned to expand its footprint beyond South India, with cities like Delhi showing promising growth.
