Bengaluru-based ready-to-cook (RTC) and fresh food brand iD Fresh Foods has secured a major strategic investment from global private equity firm Apax Partners, marking one of the largest private equity transactions in India’s packaged fresh food segment. The deal, estimated between INR 1,300 – 1,500 crore, will see Apax acquire a significant minority stake—reportedly between 25% and 35%—at a valuation of around INR 4,500 crore.
iD Fresh Funding Structure
While official financial details remain undisclosed, reports indicate that Apax’s investment includes both primary capital infusion and secondary share acquisition from existing investors Premji Invest and TPG NewQuest, who will continue as shareholders.
The investment will provide iD Fresh with the financial bandwidth to expand its product portfolio, strengthen manufacturing capacity, and scale operations across India and international markets. CEO and co-founder P.C. Musthafa emphasised that the funds will “allow us to accelerate growth, build capacity, broaden our product range, and scale into more cities and markets.”
Apax Partners, which has invested approximately USD 3.5 billion in India since 2007, is bringing not just capital but also operational expertise in consumer packaged goods (CPG). “We will work closely with the management team to expand distribution, strengthen brand positioning, and use analytics to optimize the company’s fresh, daily-delivered supply chain,” said Harjot Dhaliwal, Partner and Head of India at Apax.
iD Fresh’s Business Evolution and Market Position
Founded in 2005 by Musthafa and his cousins, iD Fresh Foods began as a small Bengaluru-based supplier of idli and dosa batter. Over two decades, it has evolved into a multi-category FMCG player with products spanning Indian flatbreads, pancake and coffee mixes, curd, paneer, chutneys, and sambar.
The company currently employs about 2,400 people and operates in over 50 cities across India and the Gulf region, backed by a robust direct-to-retailer cold-chain network that ensures freshness for 5–7 days—critical for its short-shelf-life products. It claims a 50–60% market share in its core batter categories.
Financial Performance & Profitability Milestone
After years of sustained growth, iD Fresh turned profitable in FY24, posting a net profit of INR 1.84 crore, a reversal from a loss of INR 23.3 crore in FY23. In FY25, profit before tax (PBT) surged to INR 26.7 crore, with operating revenue crossing INR 681 crore, up 22.3% from the previous fiscal.
The company credits this turnaround to a shift from its traditional batter-centric model to a broader omnichannel strategy, encompassing general trade, modern retail, e-commerce, and quick commerce. According to CEO Rajat Diwaker, iD Fresh is targeting operating revenues of INR 1,100–1,200 crore by FY27 and plans to be IPO-ready by that time, including a pre-IPO secondary sale of approximately INR 1,200 crore.
Market Implications & Sector Context
The Apax-iD deal underscores a growing investor appetite for India’s fresh food and ready-to-cook segments, driven by urbanisation, rising incomes, and consumer demand for convenient yet minimally processed “clean-label” foods.
Apax Partners’ investment in iD Fresh Foods builds on a strategic portfolio that includes Fractal Analytics, Apollo Hospitals, IBS Software, Infogain, and GlobalLogic, among others—signaling sustained confidence in India’s consumer growth story.
Outlook
With strong backing from Apax Partners and a proven distribution backbone, iD Fresh Foods appears poised for its next growth phase—expanding deeper into domestic markets, scaling international presence, and introducing innovative product lines that align with evolving consumer preferences.
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