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NEW DELHI :
Packaged foods company—iD Fresh Foods, that sells fresh idli and dosa batter-- on Tuesday announced closing of a ₹507 crore Series D funding round led by private equity firm NewQuest Capital Partner. Existing investors, Premji Invest, also participated in the round.
Early investor Helion Ventures has exited with a 10-fold return on its investment first made in 2014, the packaged foods company said in a statement. Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion.
The latest fund raise will help the company—that started selling packaged idli-dosa batter in 2005—foster product innovation, build capacities and expand its presence across key markets in India, the UAE, and the United States.
As part of its global expansion plans, the company will expand in Singapore, Malaysia and other markets in the near future.
Founded by PC Musthafa, Abdul Naser and his brothers—iD had secured $5.2 million in Series A funding from Helion Ventures in 2014 and $25 million from Premji Invest in 2017.
The company has since expanded its product range, adding more innovative products such as vada batters, parotas, wheat chapatis, instant filter coffee liquid, bread curd and paneer to its offerings.
Demand for convenience foods increased significantly during the pandemic helping companies ramp up capacities.
Currently, iD sells its batters in 45 cites, across 30,000 retail stores in India, UAE and US. The company has manufacturing plants in Bengaluru, Hyderabad, Mumbai and UAE. A manufacturing plant in the United States is in the pipeline.
Last year, the company opened up the world’s largest idli-dosa factory at Anekal in Karnataka with an investment of approximately Rs 50 crore. Its fully automated kitchen produces over 1 lakh kg batter and three lakh parotas per day.
iD Fresh Food is on track to achieve ₹500 crores in revenue (run-rate) for the current fiscal year, it said in its funding announcement. The company's chief financial officer, Jaipal Singal, also pointed to the company’s plans to launch an IPO in the next few years.
PC Musthafa, co-founder and CEO, iD Fresh Food said, the company will expand presence across channels and geographies, as well strengthen our supply chain and introduce innovative products in the coming years.
Amit Gupta, partner and head of India and Southeast Asia, NewQuest Capital Partners, said there rests a “large opportunity" in the fresh food space, where iD has a clear edge.
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