engaluru-based ready-to-cook food company iD Fresh Food, which turned the humble idli-dosa batter into a household name, is now whisking together a plan to double its revenue to Rs 1,100 crore by 2027, according to CEO Rajat Diwaker.
iD Fresh Food’s annual revenue run rate (ARR) is around Rs 700 crore for the current fiscal, up from around Rs 550 crore in FY24. The company turned profitable for the first time in FY24 and has maintained a healthy 5-year CAGR of 32% from FY19 to FY23. “We are pretty much on track to hit our Rs 700-crore target this year,” Diwaker said. “Our ARR is already heading towards that number. We’re confident we’ll achieve it.”
iD Fresh Food is also planning a potential IPO by 2027. “We’re looking at two financial milestones — Rs 1,100 crore in net revenue and a 20% EBITDA margin,” Diwaker said.
To fuel its growth, iD Fresh Food is focusing on three key areas: geographical expansion, portfolio diversification, and increased penetration in existing markets. The company recently launched new products such as chutneys, stuffed parathas, and bread. It is also venturing into the spices category, with both powdered and wet variants planned for launch in the next six months. This will add to the existing lineup of idli-dosa batters, parathas, paneer, curd, instant filter coffee decoction and powder, butter stick, and frozen fruit pulp.
“We have a clearly articulated strategy and road map to get to our 2027 revenue target,” Diwaker said. “Our objective is to have 10% of our business come from these new innovations by that time.”
The company is also expanding its manufacturing footprint, both domestically and internationally. It is planning to set up new plants in Mumbai and Pune to cater to growing demand in those markets. On the international front, iD Fresh Food is looking to establish manufacturing facilities in Saudi Arabia, Singapore, and the US by the end of this year, adding to its existing UAE operations.
Citing untapped potential in both metro and non-metro markets, the CEO said, “Even in our core markets like Bengaluru, Chennai, and Hyderabad, we’ve only undertaken about 50% of the journey in converting consumers from loose or homemade batter to branded batter.”
The company, which started the year with a presence in 26,000 outlets, aims to be in 50,000 outlets by year-end, effectively doubling its distribution network. Much of this expansion is happening in tier 2 cities, indicating that the desire for convenience foods is catching on, Diwaker said.
The growth of quick commerce has helped expand reach faster. These platforms have significantly improved their freezing and chilling infrastructure in recent years, which aligns well with iD’s fresh product portfolio, he added. Main products, including the idli-dosa batters and parathas, typically have a 7-day shelf life.
In terms of production capacity, Diwaker said that the company can currently produce around three lakh kilograms of batter per day, with an overall utilization of about 50%. However, he noted that some facilities, such as those in Hyderabad, Bengaluru, and Mumbai, are already operating at full capacity, necessitating further expansion.
The firm is also leveraging algorithms that help predict daily production needs, which it claims ensures 98% of produced goods are sold on the same day. “We work with a one-day inventory on a daily prediction model,” he explained. “We predict today what is required to be produced for tomorrow, take a production run today, and put it out in the market the next morning.” Diwaker expressed the company’s ambition to move towards a zero food wastage scenario in the future.
The company is also adapting its packaging strategies to cater to different consumer profiles across various regions and sales channels. For instance, in southern states, its most-selling SKU is a 2kg batter, while in northern states, it is the 500g packet that is helping the company achieve penetration.
According to data from Tracxn, iD Fresh Food has raised a total of $119 million in funding to date. Its latest funding round in December 2021 saw the company raise $67.4 million in a Series D round led by NewQuest Capital Partners. The company’s cap table has Premji Invest as the largest shareholder with a 34.8% stake, followed by NewQuest at 24.4%, while the founders retain a 31.1% stake.
From: financialexpress
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