[Funding alert] iD Fresh Foods raises Rs 507 Cr in Series D round; Helion gets 10x exit
has raised Rs 507 crore in a Series D funding round. The funding was led by private equity firm NewQuest Capital Partner along with the existing investor, Premji Invest. The funding will be used as capex for new manufacturing plants, and the team is also looking to set up two more plants in the Middle East and is launching its first plant in the US.
The startup also was Helion Ventures' last exit in India, and the company saw a 10x return. Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion.
Talking about Helion’s exit, Rajiv Kataria said, “We identified the potential of iD early on. We were very impressed with the team at iD. We’re glad that we could create substantial value in our association with them. We wish them luck and are sure that they will continue to delight their customers with innovative products.”
In a conversation with YourStory, Co-founder and CEO PC Musthafa said,
"We aim to strengthen our market leadership in the 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, we 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 had secured $5.2 million in Series A funding from Helion Ventures in 2014 and $25 million from Premji Invest in 2017.
Jaipal Singal, Chief Financial Officer, iD Fresh Food, said, "We are 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 capex investment of close to Rs 50 crore. Its fully automated Giant Kitchen produces over one lakh kg batter and three lakh parottas per day.
Currently, iD caters to over 45 cites across 30,000 retail stores in India, UAE, and the US. The Bengaluru-based brand’s extensive natural and healthy product range includes Idly and Dosa Batter, Ragi Idly and Dosa Batter, Rice Rava Idly Batter, Malabar Parota, Wheat Parota, Wheat Chapati, Soft and Creamy Paneer, Creamy Thick Curd, ‘Squeeze and Fry’ Vada Batter, Instant Filter Coffee Liquid, Sandwich White Bread, and Wheat Sliced Bread.
"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.
Currently, the company has manufacturing plants in Bengaluru, Hyderabad, Mumbai, and the UAE.
“iD’s sales from ecommerce have grown by 300 percent, reflecting the massive growth opportunity that D2C promises. To provide consumers with broader access to iD’s products, iD has also partnered with BigBasket to launch a co-branded label, iD Fresho. The company intends to reach a million households in India with its D2C business and leverage its superior unit economics compared to all fresh food companies including the ones in the D2C space. It is well-positioned to continue building on all its channels and platforms in creating a seamless and delightful experience for its customers globally,” said Rahul Garg, Partner, Premji Invest.
Edited by Kanishk Singh