iD Fresh Food raises Rs 507 cr in funding round led by NewQuest, Premji Invest

Bengaluru headquartered fast-food start-up iD Fresh Food on Tuesday announced raising Rs 507 crore in a Series D funding round led by NewQuest Capital Partner and existing investor Premji Invest.

The round also marked the exit of Helion Ventures with 10x returns, according to an official statement.

The fresh funds raise will be utilised to further strengthen the company's market leadership in fresh foods business, foster product innovation, build capacities and expand its presence across key markets in India, the UAE, and the US.

As part of its global expansion plans, the company plans to extend its presence to Singapore, Malaysia and other markets in the near future.  

Founded by PC Musthafa, Abdul Naser and his brothers in 2005, iD Fresh Food had secured $5.2 million in Series A funding from Helion Ventures in 2014 and $25 million from Premji Invest in 2017.

The company said that it is on track to achieve Rs 500 crore in revenue (run-rate) for the current fiscal year, despite the pandemic and related challenges in the last two years.

Last year, the company launched the world’s largest idli-dosa factory at Anekal in Karnataka with a capex investment of close to Rs 50 crore. Its fully automated 'Giant Kitchen' produces over 1 lakh kg of batter and 3 lakh parotas per day.

"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," PC Musthafa, co-founder and CEO, iD Fresh Food said.

"While there is a large opportunity set in the fresh food space, iD has a clear edge as a market leader with its deep understanding of consumer preferences and ability to innovate real-time and define industry benchmarks. Its undisputable leadership position is a testament to the quality of the founding team and the innovative and people-oriented business they have created. We’re excited to be a part of their journey and a part of the consumer revolution that they’re driving," said Amit Gupta, Partner and Head of India and Southeast Asia, NewQuest Capital Partners.