business

iD Fresh gets Rs 507 crore from NewQuest, Premji Invest, others

iD Fresh gets Rs 507 crore from NewQuest, Premji Invest, others

Bengaluru: iD Fresh Food has raised Rs 507 crore in a funding round led by NewQuest Capital Partner and Premji Invest. The funds will be used to expand footprints in the US and GCC (Middle East) region and foray into the UK market.The companys CFO, Jaipal Singal, said they are launching new factories in Hyderabad and Delhi in the next 12-18 months. Last year, iD launched the largest idli-dosa factory at Anekal in Karnataka with an investment Rs 50 croreSingal said iD has partnered with House of Spices, a South Asian food distributor in North America, to expand its frozen range in the US. “For the fresh range of products, we are exploring partnerships for either contract manufacturing or setting up our own facility,” he said.Co-founder and CEO PC Musthafa said that a market survey in the US showed that batter consumption was about 15,000-20,000 kg daily, at a $4-5 price point. The opportunity is huge. Interestingly, 70% of the target group were aware of our brand and 73% had an idli maker at home and that gave us the confidence to expand our footprint there. The US business is expected to add Rs 50 crore in revenue in the first year,” he said.One of its earliest investors, Helion Ventures, is exiting the firm with ten times the return on its investment. Founded by 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. The Bengaluru-based firm has a product range that includes idli and dosa batter, Malabar parota, curd, vada batter, instant filter coffee. Singal said the company is expected to clock Rs 500 crore in revenue by March end, from Rs 300 crore last year. “Parota has become the single largest category surpassing batter, with a monthly revenue of Rs 12 crore. Curd and paneer have done well too,” he said..

business 2022-01-05 TOI