iD Fresh Food has raised ₹507 crore in Series D funding from NewQuest Capital Partners along with the participation of Premji Invest.

With this fundraise, the company’s early investor Helion Ventures has exited with 10x returns on its investment. Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion.

The strategic fund raise is in line with the brand’s ambition to strengthen its 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. The company plans to extend its presence to Singapore, Malaysia and other markets. iD secured $5.2 million in Series A funding from Helion Ventures in 2014 and $25 million from Premji Invest in 2017. Today, the company claims to be on track to achieve ₹500 crore in revenue (run-rate) for the current fiscal year. Last year, the company launched its idli-dosa factory at Anekal in Karnataka with capex of around ₹50 crore.

Commenting on the fundraise, PC Musthafa, Co-founder and CEO, iD Fresh Food, said, “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.”

IPO plan

“We’re well poised for an aggressive phase of growth with plans to launch an IPO in the next few years, creating a billion-dollar enterprise and solidifying our long-standing leadership position in the fresh food category,” Jaipal Singal, Chief Financial Officer, iD Fresh Food, added.

Rahul Garg, Partner, Premji Invest, said iD’s sales from e-commerce have grown by 300 per cent reflecting the massive growth opportunity that D2C promises.

Amit Gupta, Partner and Head of India and South-East Asia, NewQuest Capital Partners, said, “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 leadership position is a testament to the quality of the founding team and the innovative and people-oriented business they have created.”