Idli batter major, iD Fresh food is targeting a revenue of Rs 50 cr in the next fiscal year from its latest product, a filter coffee decoction in metros and Tier 2 cities. Funded by Premji Invest, Azim Premji’s investment arm, and Helion Venture Partners, the company was a disruptor in the emerging idli-dosa batter market.
Chennai:
With this launch, the company has entered the non-alcoholic beverage market. The product which is available in retail outlets in 17 cities, will soon be available on e-commerce sites, such as Amazon and BigBasket. Musthafa PC, CEO and co-founder of iD Fresh Food, said, “Our signature product, the Idli batter is available across 14 cities in India and the UAE too. Our factories are set in Chennai, Bengaluru, Hyderabad, Mumbai and the UAE.”
iD’ range of ready-to-cook foods, include batters for idli and dosa, ragi idli and dosa, Malabar and whole wheat Parotta, Chapati and Paneer. A back of the envelope calculation estimates that the business opportunity for idli batter in Chennai is estimated to be worth Rs 12 crore per day.
However, the city has been one of the hardest markets to crack as Musthafa says, “Idli batter is still our core business today. But we are seeing other categories also growing. We have 95 per cent market share in Mumbai, 85 pc in Hyderabad, 70 pc and 10 pc in Chennai. That’s because there is a lot of competition in terms of the unorganised market.”
The company had received two rounds of funding – Rs 35 cr in 2014 by Helion and Rs 150 cr in 2017 from Azim Premji. Musthafa says he plans on quadrupling the factories’ existing net capacity, which is 1 lakh kg of batter per day.
“The goal is to generate a revenue of Rs 250 cr this year and become a Rs 1,000 cr company in the next four years.”