iD Fresh, which makes ready-to-cook packaged food items, is in talks to sell about 30% stake in the company for around ₹1,200 crore to global private equity funds, including Permira, Apax, L Catterton and Carlyle, according to four people familiar with the matter.
“The PE firms are bidding for about 30% stake ( ₹1,200 crore) in the company and the transaction will give a part exit to Premji Invest which first backed the company in 2017,” one of the people cited above said.
“The deal will value the overall asset anywhere between ₹4,000-4,500 crore,” a second person familiar with the matter said.
The efforts to realign its cap table come as the company prepares for its next phase of growth ahead of a potential public listing. This also comes at a time when the ready-to-eat market is tough to crack, given the intensifying competition and amid India’s love for fresh and home-cooked meals.
The deal, which is likely to be a secondary transaction, will see Premji Invest offload nearly half of its stake as the company prepares for an IPO, the first person said.
In a secondary transaction, shareholders sell their stakes to other existing or new investors, and no new capital is injected into the company.
“TPG NewQuest may also look to offload a small part of their stake based on final deal contours,” a third person said, adding that the company may need very negligible primary capital as it is already profitable.
All the people mentioned above spoke on the condition of anonymity as the discussions are still confidential.
TPG NewQuest, Carlyle, Apax and iD Fresh have declined to comment on the development, while Premji, Permira, and L Catterton are yet to respond to Mint’s requests for a comment.
Tapping demand
The ready-to-eat market in India is expected to grow to $1,064 million between 2024 and 2027, according to estimates by market research firm Technavio.
However, at least 80% of the packaged food market remains unorganized, presenting a viable opportunity for players like iD Fresh.
The ready-to-eat segment remains underpenetrated in India, particularly in smaller cities, making iD Fresh well-positioned for scaling and sustained growth, Natasha Treasurywala, partner at Desai & Diwanji said.
Rising incomes, evolving lifestyles, and the increase in dual-income households are driving greater demand for convenient solutions. “While quick commerce may capture a portion of consumer spend, it largely serves different needs and price points, and therefore is more complementary than competitive to RTE (ready-to-eat),” Treasurywala said.
Focus on foods
Founded in 2005 by P.C. Musthafa and Abdul Naser, iD Fresh shot to fame on the back of growing demand for ready-to-cook products among young professionals who lived away from home and desired quick meals. Over the years, it has raised upwards of $120 million from investors such as Premji Invest and New Quest Capital Partners.
The company last raised ₹507 crore in its series D funding round led by TPG’s NewQuest Capital Partners to fund its expansion plans that includes product innovation, build capacity and expand its presence across key markets in India, the UAE and the US.
The company had also outlined plans to launch its products in Singapore and Malaysia at the time. The firm also has plans to list in public markets by the end of FY27, subject to market conditions, Mint earlier reported.
Since then, the company has increased its focus on premium products and has made higher investments in expanding production capacity which enabled it to post a ₹4.5 crore profit in FY24- its first since inception. In the subsequent year, the company’s profit rose to ₹25.87 crore while its revenues increased to ₹681.37 crore from ₹557.84 crore in FY24, an Entrackr report said.
In FY25, the company launched more than 10 new items, including longer shelf-life, higher-price categories like spice blends, ready-to-heat sambhar, and chutneys. These new launches are expected to contribute 10% of the company’s overall revenue in the next two years, Musthafa told Mint in July.
